Andersen UK To Lay Off 1,500

The firm employs around 5,000 people in the UK and consultations are already underway about who is to leave.

Managing Partner John Ormerod said: 'The combination of difficult economic conditions and the effects of the Enron situation means the UK firm is not acheiving the levels of business activity on which our headcount is based.'

The firm defended the timing of the announcement. Cynics expressed the view that the decision to release the information on Budget day was an attempt to deflect attention from the move.