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Thursday, March 30, 2023

EY Germany to make structural changes in cost-reduction push 

EY Germany to make structural changes in cost-reduction push 
© Reuters. FILE PHOTO-The logo of Ernst & Young is seen in Zurich, Switzerland November 13, 2020. REUTERS/Arnd Wiegmann

(Reuters) – 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, a company spokesperson told Reuters on Thursday in an emailed statement.

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

The Financial Times had reported earlier in the day, citing sources, that EY Germany is planning to cut 40 partners and 380 staff as it looks to improve profitability following the Wirecard scandal fallout.

Majority of the partners facing the job cuts are from the firm’s audit practice, according to the FT report, 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. Wirecard collapsed in 2020 after it was forced to admit that 1.9 billion euros ($2.07 billion) were missing from its balance sheet.

($1 = 0.9165 euros)

Source: Investing.com

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