Accenture (ACN), Booz Allen Hamilton (BAH), and Deloitte are losing IT contracts worth $4 billion as part of the Trump administration's attempt to reduce spending on consultants, according to a Pentagon memo released Thursday.

Defense Secretary Pete Hegseth has determined the contracts to be "non-essential spending" for tasks that could be fulfilled by Pentagon employees, the memo said.

"These terminations represent $5.1 billion in wasteful spending at the department, and nearly $4 billion in estimated savings which we can re-allocate to our mission-critical priorities," the memo said.

The contracts include a Defense Health Agency contract for consulting services from Accenture, Deloitte, Booz Allen Hamilton and an Air Force contract with Accenture, the memo said.

Accenture and Booz Allen Hamilton did not immediately reply to MT Newswires' requests for comment.

Booz Allen Hamilton shares were down 2% in Friday's premarket activity, while Accenture was off 0.1%.