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

Wirecard AG

26/01/2023 06:15

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)
 (Reporting by Gokul Pisharody in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((Gokul.Pisharody@thomsonreuters.com;))