RSM Tenon fleshed out the first steps in a recovery plan following a profit warning in January.
The accountancy firm is to shed about 10 per cent of its workforce and improve synergies from recent acquisitions, to save about £14m a year.
While demand from clients has come under pressure as they attempt to cut their own costs, the firm believes growth from its target market of small and medium-sized enterprises will help revive profits.
Shares in the company rose on Wednesday but, having lost more than 80 per cent of their value in the past year, investors will want evidence that a turnround can deliver lasting improvement.
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