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.