- Secretary of Defense Pete Hegseth announced the cancellation of $580 million in Department of Defense contracts and grants, including $30 million in IT Gartner (IT) contracts, causing Gartner’s stock to drop nearly 8% to $415.36 on Thursday.
- Hegseth targeted an HR software project $280 million over its $36 million budget, $360 million in grants like $6 million for decarbonizing Navy ships and $9 million for equitable AI, aiming to redirect funds to warfighter priorities.
- Partnering with DOGE, Hegseth’s cuts contribute to a total of $800 million in eliminated wasteful spending within weeks, with promises of more to come as he focuses on transparency and efficiency.
Secretary of Defense Pete Hegseth is making waves at the Department of Defense, announcing in a video posted on X that he’s slashing $580 million in contracts and grants he deems wasteful, a move that’s already rattling markets with IT Gartner (IT) shares dropping nearly 8% to $415.36 in Thursday trading. Hegseth’s goal is clear—redirect taxpayer dollars to what he calls the real needs of warfighters, not projects that don’t align with the current administration’s priorities. He’s targeting a mix of bloated tech deals and what he sees as misguided green and diversity initiatives, laying out the cuts with a straightforwardness that’s hard to miss.
Another round of @DOGE findings here at the Department of Defense. pic.twitter.com/PSrHn8Zjlq
— Secretary of Defense Pete Hegseth (@SecDef) March 20, 2025
In the video, Hegseth dives into the specifics, starting with an HR software project that ballooned from a $36 million, one-year effort into an eight-year, $280 million mess—780% over budget and still not delivering. He’s axing that without hesitation. Then there’s $360 million in grants he’s scrapping, including $6 million to decarbonize Navy ship emissions, a holdover from the Obama-Biden era, and $5.2 million meant to diversify the Navy by engaging underrepresented BIPOC students and scholars. He also calls out a $9 million university project for “equitable” AI and machine learning, insisting he wants lethal tech, not politically driven models. Add to that $30 million in consulting contracts with Gartner and McKinsey – think IT purchasing and unused licenses – and you’ve got his $580 million total.
Hegseth ties this to a broader push with DOGE, the Department of Government Efficiency, saying these cuts bump their running total to $800 million in just a few weeks. He’s framing it as a mission to kill waste, fraud, and abuse, signing the memo on camera to seal the deal. With more cuts promised, this is a bold signal—Hegseth’s not here to mess around, and the market’s feeling the heat.
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