Auditing firm BDO USA has laid off employees to reduce expenses considering a debt arrangement with Apollo Global Management, reports Bloomberg.
Apollo is a principal financier to BDO, providing a loan facility worth $1.3bn as of August 2023 to fund its ESOP, the news publication noted.
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This debt was incurred to support the implementation of an employee stock ownership plan.
Sources have indicated that the firm has recently made a series of layoffs and suspended non-essential travel as part of these cost-reduction efforts.
The financial pressure from the high-interest debt has impacted several departments within BDO, including tax, audit, and advisory services.
BDO has chosen not to comment on client-related issues.
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By GlobalDataThe company’s financial management has come under scrutiny following a proposed class action from a participant in the ESOP, claiming that workers were overcharged for joining the plan.
The interest rate on this debt, which stands at approximately 9%, was reduced by 100 basis points from its original rate following a refinancing agreement on 30 June.
Despite these challenges, a source stated that the company maintains a stable financial position and continues to evaluate its operations to ensure they are run efficiently.
On the other hand, Apollo has not issued any comments regarding the matter.
For the fiscal year that concluded on 31 December, BDO USA, which operates privately and does not publish financial statements, reported a revenue of $2.89bn, the report said.
The bankruptcy of First Brands Group has been a significant issue for BDO, which had previously given the company a clean audit opinion.
However, the group later sought a quality of earnings report from Deloitte amidst heightened scrutiny from its lenders.
First Brands downfall has left investors with substantial losses, with debts exceeding $10bn.
In September 2025, BDO USA disclosed its intention to hire more than 1,300 individuals, including 30 principals, from the professional services firm HORNE.
