Wirecard scandal forced EY to cut 40 jobs

Wirecard scandal forced EY to cut 40 jobs

In Zurich the logo of Ernst Young is seen.

A company spokesperson told Reuters on Thursday that the German unit of EY, formerly known as Ernst Young, has decided to make structural changes with a focus on personnel measures and reductions of non-personnel costs.

The company has started discussions with the co-determination body, referring to the German system that gives workers a say in corporate decision-making.

The Financial Times reported earlier in the day that EY Germany is planning to cut 40 partners and 380 staff as it looks to improve its profitability after the Wirecard scandal.

According to the FT report, the majority of the partners facing the job cuts are from the firm's audit practice, accounting for about 5% of the equity and salaried partners in the German business.

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