Andersen to cut 6,000 US jobs - report

Andersen is poised to cut up to 6,000 US jobs, according to reports.

The lay-offs will form part of a 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.

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

Joseph Berardino, the firm's global chief executive, stood down on Tuesday night, and 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 Larry Gorrell, managing partner in Andersen's Chicago office.

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