The card issuer Wirecard will cut 730 of its 1,300 employees at the German office amid the bankruptcy proceedings underway,Bloomberg reports.
The layoffs will help conserve resources and support the business.
The current supervisory board is set to relinquish control of the company and may resign after notice.
“The economic situation of Wirecard AG was and remains extremely difficult due to the lack of liquidity and the well-publicised circumstances of the scandal,” said Michael Jaffe, the court-appointed administrator for Wirecard.
According to him, the company has begun selling assets to repay creditors.
Earlier, in June, auditors could not confirm that the company had €1.9 billion in account balances.
Subsequently, the company filed for bankruptcy.
Munich police have detained former Wirecard chief Markus Braun, who resigned amid the scandal. He is suspected of falsifying cash-balance data on the company’s accounts.
In August, Interpol issued a warrant for former Wirecard director Jan Marsalek. According to some reports, after his disappearance he made a large transfer in bitcoins and is believed to be hiding in Russia.
Read the story of Wirecard’s rise and fall in ForkLog.
How Wirecard collapsed: dubious clients, forged reports and a €2 billion hole
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