Ernst & Young offers redundancy to 63 staff

Accounting firm Ernst & Young New Zealand has offered redundancy to 63 employees after its merger with Andersen.

Ernst & Young chairman Rob McLeod said in a statement that staff from both companies -- about 2 per cent of the combined employee numbers -- would be affected.

"Although we have grown our client base significantly and strengthened our position in the market as a result of the merger, there was inevitable duplication in some areas," Mr McLeod said.

"The integration process between the two organisations has proceeded extremely swiftly and successfully, and while it is regrettable that some staff will lose their jobs, 200 Andersen employees who were facing an uncertain future at the beginning of last month have been confirmed in their roles."

Ernst & Young, now New Zealand's second-biggest accounting firm, has 810 partners and staff.

In March, Andersen and rival "Big Five" firm Ernst & Young agreed to amalgamate their New Zealand activities as part of the global split of accounting giant Andersen, after the collapse of United States energy giant Enron.

Andersen's future around the world has been in doubt since the firm's US activities were charged with obstruction of justice for shredding documents relating to their audit of Enron.

- NZPA