Anderson is considering shedding up to 6,000 jobs in the US, more than 20 per cent of the workforce, and will make an announcement within a week.
Cuts will be outlined in a plan that will be portrayed by the professional services firm as its survival strategy in the face of federal criminal charges and an exodus of audit clients. The US practice, which employs 28,000 of Andersen's 85,000 worldwide staff, is reeling from criticism and lost business over its role in the Enron scandal. The company's top US executive held a closed circuit television broadcast for its roughly 1,700 US partners yesterday to discuss the next steps in dealing with Enron fallout. They ranged from merger plans to a new worldwide chief executive following the resignation of Mr Joseph Berardino, the firm's global chief executive, on Tuesday night.
Mr Terry Hatchett, the head of its North American practice, has already stood down, according to reports. He was replaced on an interim basis two weeks ago by Mr Larry Gorrell, managing partner in Andersen's Chicago office.
People close to Andersen said the company was discussing a headcount reduction in line with its lost revenues from the scandal's fall-out.
That would imply at least 6,000 fewer staff, the people said, although no number has been finalised and Andersen is hoping that some staff will leave voluntarily or be hired by rivals.
Andersen also plans to give more details of plans to separate its audit and consultancy businesses. The move is a crucial step in the firm's attempt to restore its integrity. Andersen plans to remodel itself as a pure audit firm.
