The largest areas affected by the personnel reductions are the audit practice and administrative services. Some of the cuts represent U.S. personnel who provided services used by other member firms in the Andersen network.

"Of all the issues we have confronted recently, none compare to actions we are now forced to take with our employees," said Larry Gorrell, managing partner of the U.S. "This decision is even more painful in light of the loyalty, commitment, and hard work that our employees have demonstrated during this difficult time."

Some of the savings generated from cost-cutting measures allow for job search benefits and the retention of a larger number of Andersen employees. Andersen is providing all affected personnel job search services and allowing employees to stay on the payroll for a period determined by position and length of service. Health insurance, computers and telephone access are some of the benefits available to individuals during the period while they continue on Andersen’s payroll. Internal recruiters at the firm have been assigned to assist individuals with their job search.

Going forward, the company said the majority of Andersen’s U.S. employees will continue their work servicing clients and building the firm of the future with audit and tax expertise.

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