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Wirecard lays off more than half of remaining German staff

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HomeLatest Platform NewsFinTech PlatformsWirecard lays off more than half of remaining German staff

The infamous German FinTech Wirecard has let go more than half of its remaining staff in Germany and terminated the contracts of its management board members, its bankruptcy administrator has said.

News of the layoffs came as Wirecard’s demise amid an accounting scandal entered a new stage, with the official opening of bankruptcy proceedings on Tuesday.

Michael Jaffe, the bankruptcy administrator, stated “far-reaching” cuts were required to maintain Wirecard’s core business operational.

The business is laying off around 730 staff, while keeping 570 at its base in Aschheim, Germany.

The three remaining board members whose contracts were terminated included the current Chief Executive James Fries, who joined Wirecard only recently to succeed Markus Braun, who remains in custody.

“The economic situation of Wirecard AG was and is extremely difficult in light of the lack of liquidity and the well-known scandalous circumstances,” Mr Jaffe said.

Wirecard AG was a rising star in business Germany, earning a spot as one of 30 blue chips, but in a dramatic fall from grace, Wirecard filed for bankruptcy because lenders 4 billion euros (approximately $4.73 billion) after demonstrating a 1.9 billion euro hole in its accounts.

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Prosecutors suspect Wirecard executives of masterminding a criminal racket to fake the organisation’s accounts and defraud creditors of billions of euros.

Jaffe is working to sell Wirecard’s worldwide assets. The very first deal to sell its operations in Brazil was agreed last week.

You can read our timeline on the controversial German payment company here.

The team at Platform Executive hope you have enjoyed the ‘[post_title]’ article. Initial reporting via our content partners at Thomson Reuters. Reporting by Hans Seidenstuecker, Patricia Uhlig and Tom Sims. Editing by Madeline Chambers and David Evans.

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