The 7,000 job cuts were not unexpected. It is thought that the Andersen US audit practice and administrative services staff will be the worst areas hit.
The firm continues to talk to competitors about selling parts of the business.
In a related story, David Duncan, the former Andersen lead auditor on the Enron account, has pleaded guilty to obstruction of justice charges for authorizing the destruction of Enron-related documents.
It is now widely believed that Mr Duncan will cooperate with federal authorities by providing information which will help the government's investigation into Andersen.
Arthur Andersen announced on Monday that it will let go around 27% of its US workforce over the next few months as it continues to struggle for survival in the aftermath of the Enron affair.
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