Andersen May Announce Up to 6,000 Job Cuts in the US

The Financial Times is reporting that the leadership of Andersen's US operations is considering cutting up to 6,000 US staff as part of its strategy to survive. The final number of cuts has not been finalized, and a formal announcement is expected within a week.

If implemented, one out of five Andersen US employees would be let go. Andersen is hoping that some of those who are likely to be cut may leave voluntarily or will be hired by other employers.

The expected cuts are in response to the growing number of client defections that Andersen has experienced since the heat has been turned up by the Department of Justice.

Further senior management changes may also be reported. Andersen CEO Joseph Berardino announced his resignation earlier this week to help pave the way for reform and firm survival.

Part of the survival strategy for Andersen is expected to revolve around the transformation of the firm from a full service professional services firm to a pure audit firm, as recommended by Paul Volcker who was brought in to guide the strategy for the firm.

In addition to the radical changes already reported, Andersen has further indicated that it will be making many "difficult decisions in a number of areas over the next few months" in order to assure its survival.

You may like these other stories...

On a typical June day, Kentucky high school students David Wagner, Kayla Cook, and Michael Kiraly would be kicking back, enjoying all the pleasures of summer—playing video games, hanging out by the pool, or binge-...
Event Date: July 17, 2014, 2 pm ETThis webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.Participants will learn:...
The Madoff Ponzi scheme, financial crisis of 2007-2009, ongoing mortgage fraud and other scandals, and laws like Sarbanes-Oxley and Dodd-Frank that were passed to counter the fraudsters, send a clear message: fraud...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.