PwC Sacks 1,100 at Enron as SEC Targets Andersen

Administrators from PricewaterhouseCoopers have cut 1,100 UK jobs at the European holding company of the Enron group - just as U.S. watchdog the Securities and Exchange Commission announced that it plans to investigate the work of Andersen, auditors for the troubled energy group.

PwC's Tony Lomas commented, "The over-riding priority is to preserve the valuable parts of the business and to reduce the cash needs of the business whilst seeking to secure the future of certain Enron businesses and its employees." Only around 250 Enron staff will be left working in the UK.

Meanwhile Enron is seeking $10 billion in damages from Dynegy, alleging breach of contract in connection with Dynegy's wrongful termination of its proposed merger with Enron. The failure of the merger has heavily influenced the decision by the energy giant to file for bankruptcy.

Big Five firm and Enron auditor Andersen has been issued a subpoena from the SEC calling for documents relating to the Enron audits. "We did receive a subpoena in relation to our financial reporting on Enron, which is a customary part of the process," said Dave Tabolt, a spokesman for Andersen.

Enron's share price began its tailspin in October, after it was revealed that the company had overstated earnings for several years and had concealed the existence of billions of dollars in debt. Enron's shares closed Friday on the NYSE at 26 cents; a year ago the shares sold for $85.

Related Stories:

  • Andersen Agrees to Expanded Peer Review
  • Andersen Enron Fiasco Prompts Look at Peer Reviews
  • Andersen Faces SEC Sanctions over Enron Reporting
  • You may like these other stories...

    Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
    When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
    Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

    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.