BERLIN: 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 today, citing sources.
EY, one of the “Big 4” global accounting 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 were missing from its balance sheet.
The majority of the partners facing job cuts are from the firm’s audit practice, the FT report said today, 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.