Andersen to cut 6,000 US jobs, says FT

Andersen is set to cut up to 6,000 US jobs, according to the Financial Times.

Andersen is set to cut up to 6,000 US jobs, according to the Financial Times.

The lay-offs will be part of a survival strategy in the face of federal criminal charges and an exodus of audit clients.

Andersen may also detail further senior management changes, says the newspaper.

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.

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Mr Joseph Berardino, the firm's global chief executive, stood down on Tuesday night, and Mr Terry Hatchett, the head of its North American practice, has already stood down, says the paper.

He was replaced on an interim basis two weeks ago by Mr Larry Gorrell, managing partner in Andersen's Chicago office.

Andersen, which the US government has charged with obstruction of justice, plans to remodel itself as a pure audit firm. That move would match recommendations by Mr Paul Volcker, former chairman of the Federal Reserve, who was hired to review Andersen's practices.

PA