Andersen layoffs trouble KU seniors

Layoffs at Arthur Andersen are raising concerns among Kansas University accounting students who were promised post-graduation jobs at the troubled accounting firm.

Until Monday, Jill O’Connell, a master’s student in accounting, expected to graduate this spring and then head off to Andersen’s Chicago office in September to start her career. But the company’s announcement that it is laying off more than a quarter of its U.S. work force because of a rapid loss of business after the Enron scandal has left her future uncertain.

“I’m not exactly sure about my job at this point,” she said.

Several students met this week with Andersen officials for a briefing on the firm’s situation and how it might affect their job status.

O’Connell wouldn’t confirm she attended the meeting but said she expected to know within three weeks whether she still had a job with Andersen.

The Chicago office, which serves as headquarters, is expected to suffer the brunt of the layoffs.

Ali Hickman, also a master’s student in KU’s accounting program, said she was confident her job was secure. She has accepted a position at Andersen’s Kansas City office, where layoffs are less likely than at the firm’s larger branches.

“Andersen’s really been communicating well with all of us,” she said. “I’m confident that they are going to take care of me.”

Andersen has been accused in a federal indictment of obstructing justice by destroying documents related to Enron Corp., its audit client, while the Houston energy trader was under federal investigation. Andersen denies the charge.

O’Connell said students in KU’s accounting department worry that Andersen’s tarnished reputation will give a black eye to the accounting profession.

“It has caused concern among all of the accounting students at KU, whether they’re going to work at Andersen or not,” she said. “It will affect the profession as a whole, not to mention each firm.”

But Hickman predicted Andersen’s troubles would be little more than a bump in the road in the long run.

“The profession has been kind of tarnished, but it’s also a very valuable profession for businesses,” she said. “I don’t think I’ll ever have a problem finding a job.”