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Capital Business
Posted at 10:45 AM ET, 01/20/2012

Booz Allen to reduce size of partner corps, senior staff

McLean-based contracting giant Booz Allen Hamilton is trimming its senior and middle management workforce, bowing to the pressure of reduced government spending.

Though the company would not identify how many employees are being shed, it said in a statement that it is “taking bold action to be out in front.”

“We will become more cost-competitive to win and deliver premier services in all of the markets we choose to serve by reducing the size of our senior and middle management ranks, and taking cost out of our infrastructure and overhead,” the statement said.

Ralph Shrader, the company’s chairman, president and chief executive, earlier this week sent employees a memo on the changes.

The text of the memo is below:

“Dear Colleagues,

“You know first-hand the uncertainty our government clients are facing, and know from reading the news that companies across our industry are being affected by budget and program cuts. We believe Booz Allen is positioned well to serve our clients in their core missions, we’re aligned against growth areas in the market, and we have an unmatched reputation for excellence, integrity, and client service. But, we are not immune to these challenging times. Our growth rate today is significantly lower than in the past.

“To ensure that Booz Allen will succeed — and lead — in this difficult market, which shows no sign of improving, we are taking bold action to be out in front. We will become more cost-competitive to win and deliver premier services in all of the markets we choose to serve. And, we will become more agile, further shifting resources and increasing our investments in growth areas across government, commercial, and international such as cyber, health, ISR “Information Surveillance Reconnaissance” (C4), and finance. We are making reductions in the partner corps and senior staff, and we will take cost out of our infrastructure and overhead to make Booz Allen even more lean, agile, and better positioned to compete for, and expertly perform, important work for our clients. 

“These changes will not be easy, and I assure you, they are not being undertaken lightly — the hardest thing I have to do in my job is to tell a long-serving partner or hard-working staff member there is no longer a position in the firm. For the great majority of you, these changes will make Booz Allen a more successful, secure, and exciting place to grow and excel. In my 38 years with the firm, I’ve seen boom times and hard times.When I look back — and more importantly, look forward — bold action is what propels us ahead. The future is ours to lead.

“— Ralph”

By  |  10:45 AM ET, 01/20/2012

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