Andersen to lay-off 7,000

The accountancy firm Andersen has said it will lay off 7,000 workers at its US arm Arthur Andersen.

Of all the issues we have confronted recently, none compare to actions we are now forced to take with our employees

Larry Gorrell
Andersen

Andersen blamed the Enron scandal for the layoffs, which will be executed over the next few months.

About a quarter of Andersen's US workforce will lose their jobs.

"Of all the issues we have confronted recently, none compare to actions we are now forced to take with our employees," said Larry Gorrell, managing partner of the firm's US operations.

Cuts inevitable

Staff working in Andersen's audit and administrative units will be hit the hardest by the cuts.

Heavy cuts are expected at the firm's Chicago headquarters where 5,300 people work.

Andersen warned last month that the job cuts in the US were inevitable.

Breaking up

Andersen's problems have been mounting in recent years, along with a criminal indictment and substantial lawsuits brought by shareholders for its role in the demise of Enron.

Many of Andersen's clients, scared off by the scandal, have walked into the open arms of the accountant's competitors.

The competitors have been actively snapping up bits of Andersen's business too.

Most of Andersen's US tax practice will be sold to its rival Deloitte & Touche.

While internationally, Andersen's network is being carved up by its rivals.