Arthur Andersen is cutting up to 1,500 staff in Britain. It says the job losses are a result of lower business levels.
Andersen has started a consultation process with employees.
The reduction in headcount affects all areas of Andersen's British business, apart from Andersen Legal and Partners.
The job cuts will reduce Andersen's staffing levels from 5,000 to 3,500 in Britain.
Managing partner Mr John Ormerod says: "The combination of difficult economic conditions and the effects of the Enron situation means the UK firm is not achieving the levels of business activity on which our headcount is based.
"We deeply regret having to make this decision, and our aim is to carry out the process as fairly as possible to minimise potential disruption to our business and uncertainty for employees," he added.
PA