Auditor BDO Cuts Jobs With Focus on Managing Apollo Debt (1)

Auditing firm BDO USA has slashed costs as it managed an expensive debt agreement with Apollo Global Management Inc that it took on to fund an employee stock ownership plan.

BDO has laid off dozens of employees in recent months and halted non-essential travel earlier this year, according to people familiar with the situation, who asked not to be identified discussing private matters. The cuts, driven in part by the high interest costs of the debt, have affected business lines including audit, tax and advisory, one of the people said.

The belt-tightening comes as one of BDO’s clients, the now-bankrupt ...