The Globe and Mail reports in its Thursday, May 1, edition that CGI chief executive officer Francois Boulanger reported a sharp drop in bookings from U.S. government clients in the latest quarter due to economic uncertainty and a spending crackdown led by Elon Musk. A Canadian Press dispatch to The Globe reports that while overall profits increased, the book-to-bill ratio for its U.S. subsidiary, CGI Federal, fell to 40 per cent. CGI Federal, which provides IT services to U.S. government agencies, generated about $2-billion in sales last year, accounting for 14 per cent of CGI's total revenue. Mr. Boulanger noted that clients are cautious about large contracts and are opting for short extensions of existing agreements. He said, "Instead of signing a five-year renewal or three-year renewal, what's happening is that they'll sign bridge contracts to continue the work, but not necessarily doing big renewals until they'll have a better understanding of the new processes and the new way that they would procure in the future." CGI is in a tough spot in the U.S. After budget cuts from the Department of Government Efficiency (DOGE), led by Mr. Musk, it faces significant challenges.