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CNN Live At Daybreak

Arthur Andersen Laying Off About 7,000 Workers

Aired April 09, 2002 - 05:25   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: The Arthur Andersen accounting company is laying off about 7,000 workers, and as you might expect, the layoffs are part of the fallout from that Enron scandal.

CNN's Keith Oppenheim watched as Andersen employees in Chicago took their boxes to the curb.

(BEGIN VIDEOTAPE)

KEITH OPPENHEIM, CNN CORRESPONDENT (voice-over): In downtown Chicago, a couple put some boxes in the rear of their vehicle, but they're in no mood to talk to the media. This scene repeated itself many times, as employees of the Arthur Andersen accounting firm got the news they knew was coming, they're out of a job.

UNIDENTIFIED MALE: I love this company. I love working here. So it's very hard to leave it. I'm losing my family almost.

OPPENHEIM: Ever since the financial collapse of Enron left investors in tatters, Andersen's been in trouble. Enron was an Andersen client and three weeks ago the Justice Department indicted Andersen for obstruction of justice based on evidence the firm shredded Enron related documents.

(on camera): Andersen is reportedly considering a deal with Justice, one that would involve some admission of responsibility, but no guilty plea. Meanwhile, the company's lost about 130 clients, is transferring its tax auditing services to other firms.

(voice-over): Those employees who did speak today seem not to hold a grudge against Andersen.

PAMELA WOODS, FORMER ANDERSEN EMPLOYEE: No, I'm not mad at Andersen. I'm pretty mad at the Department of Justice for indicting the whole firm for the actions of a few.

OPPENHEIM: Andersen had 28,000 employees in the U.S.

UNIDENTIFIED MALE: They more or less gave me my continuing of my package, severance and said good-bye.

OPPENHEIM: And the process of letting go, Andersen says, could take months. But eventually, nearly a quarter of U.S. staff will have to walk away, some who feel they lost out when they tried to do their jobs well.

Keith Oppenheim, Chicago.

(END VIDEOTAPE)

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