EY Germany to cut hundreds of jobs in profitability push – FT

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Jan 26 (Reuters) – The German unit of EY, formerly known as Ernst & Young, is planning to cut 40 partners and 380 staff as it looks to improve profitability following the Wirecard scandal fallout, the Financial Times reported on Thursday, citing sources.

EY, one of “Big Four” global accountant firms, had audited and certified payments company Wirecard’s books even as journalists and investors raised questions about its finances. Wirecard collapsed in 2020 after it was forced to admit that 1.9 billion euros ($2.07 billion) were missing from its balance sheet.

Majority of the partners facing the job cuts are from the firm’s audit practice, the FT report said on Thursday, accounting for about 5% of the equity and salaried partners in the German business.

EY did not immediately respond to a Reuters request for comment.

($1 = 0.9165 euros)

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