Arthur Andersen to lay-off 7,000 US staff

Accountancy giant Arthur Andersen which is embroiled in the Enron bankruptcy scandal is laying off about 7,000 US employees over the next few months

Andersen had warned last month that the cuts were inevitable.

In a statement, Andersen said its audit practice and administrative services will bear the brunt of the cuts, which amount to about a quarter of its American work force of 28,000.

The 89-year-old firm employs about 5,300 people at its Chicago headquarters, where heavy layoffs are expected