BDO Lays Off Dozens Amid Apollo Debt Agreement, Halted Travel

BDO USA has laid off dozens of employees and halted non-essential travel to manage an expensive debt agreement with Apollo Global Management. The auditing firm has been impacted by the bankruptcy of one of its largest clients, First Brands Group, which is under scrutiny for its use of off-balance sheet financing. BDO used the debt from Apollo to fund its Employee Stock Ownership Plan in 2023, but a participant filed a proposed class action alleging workers were overcharged to join the plan.