BDO USA lays off employees amid Apollo’s debt repayment

Core Insights - BDO USA has initiated layoffs and cost-cutting measures due to financial pressures from a $1.3 billion loan facility provided by Apollo Global Management, which is linked to an employee stock ownership plan [1][2][3] - The company reported a revenue of $2.89 billion for the fiscal year ending December 31, and is currently under scrutiny due to a proposed class action related to the ESOP [4][3] - BDO's financial management has faced challenges, particularly following the bankruptcy of First Brands Group, which has resulted in significant losses for investors [5] Financial Situation - BDO has incurred high-interest debt with an interest rate of approximately 9%, which was recently reduced by 100 basis points after a refinancing agreement [3] - The layoffs and suspension of non-essential travel are part of broader cost-reduction efforts to manage financial pressures [2] Operational Adjustments - Despite the financial challenges, BDO is reportedly maintaining a stable financial position and is evaluating its operations for efficiency [4] - The company has plans to hire over 1,300 individuals, including 30 principals from another professional services firm, indicating a potential strategy for growth despite current challenges [5]