CHICAGO?Staggered by a rapid loss of business following the Enron scandal, Arthur Andersen LLP announced Monday it is laying off about 7,000 employees, or more than a quarter of its U.S. work force.

The layoffs, which Andersen had warned last month were inevitable, come with the firm’s damaged reputation, its overseas network disintegrating and dozens of U.S. companies replacing it as their auditor.

In a statement, Andersen said its audit practice and administrative services will bear the brunt of the cuts, amounting to a little more than 6,500 workers.

Andersen said cutbacks were “one of the many consequences of the events of the last month,” despite efforts to avoid them.

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