What Next at Andersen? as Company Cuts 7,000 Employees, Workers Scramble to Find New Jobs

By Comerford, Mike | Daily Herald (Arlington Heights, IL), April 9, 2002 | Go to article overview

What Next at Andersen? as Company Cuts 7,000 Employees, Workers Scramble to Find New Jobs


Comerford, Mike, Daily Herald (Arlington Heights, IL)


Byline: Mike Comerford Daily Herald Business Writer

When Arthur Andersen LLP employees show up for work this morning in St. Charles, they'll be going to two sets of rooms, one for workers being laid off and the other for those spared.

Recorded messages telling 1,200 St. Charles workers which room to report to were placed to their workplaces and homes as late as Monday night. Andersen officials said the messages were necessary to expedite 7,000 layoffs across the country announced on Monday. Some departments, however, were handling the firings face-to-face.

As expected, the Chicago-area was hit worse than most areas across the country because the concentration of training and headquarters jobs here.

About 50 percent of St. Charles employees are being cut, or about 500 to 600 workers, according to reports the company would not confirm.

"I was in the room with some survivors (on Monday)," said Scott Ward, a partner in the Australian unit of Andersen, who has lived in St. Charles on and off for four years.

"There wasn't any joy in there," he said. "Everyone felt bad about the people let go, and everyone knows they still might be next."

Scott, 33, is being transferred back to Australia on Wednesday with his wife and two young children. Andersen's Australian unit is trying to merge with Ernst & Young International.

Staggered by a rapid loss of business from the Enron scandal, Andersen is slashing its U.S. payroll by 27 percent and analysts widely expect more to come when tax season is finished in late April or early May.

The Chicago-based Andersen is considering shrinking to a third of its current size, according to industry analysts, including Ray Whittington, director of the School of Accountancy and Management Information Services, at DePaul University in Chicago.

"I'd say their chances of survival are about 50-50 right now," Whittington said.

The layoffs, which Andersen had warned last month were inevitable, come with the firm's reputation in tatters, its overseas network fast disintegrating and more U.S. companies replacing it daily as their auditor and financial consultant.

As for severance, employees are being offered a week's pay for every year worked, with a minimum of two to four weeks, according to employees. In the meantime, they'll be allowed to use Andersen offices to seek other employment.

The 89-year-old firm employs about 5,300 people in the Chicago area.

Walking out of Andersen's Chicago headquarters on Monday at Monroe and Dearborn streets into the cold and rain, Barbara Koscielski, 30, of Oak Lawn, had just been told that she'd been fired. She pondered her fate as an expectant mother.

"I'm trying to stay focused on the baby," said Koscielski, who is seven months pregnant and has worked for Andersen's marketing department for three years. "Before I had a plan, and everything was planned out for me. Now, there's a lot of uncertainty."

The company said no breakout of planned cuts was yet available.

Experts say laid-off employees who were accountants working with paying clients will have an easier time finding work.

"Those in training, or support, internal accounting and people like billing clerks will have a more difficult time finding work," said Joseph M. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

What Next at Andersen? as Company Cuts 7,000 Employees, Workers Scramble to Find New Jobs
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.