Accountancy and advisory firm RSM Tenon has begun cutting significant numbers of its 3,000 staff in a bid to save £14m annually.

In its interim results, the firm said it needed to immediately improve profitability and cash generation after seeing a loss of £70.6m on continuing operations for the last six months of 2011.

As a result, 10 per cent of jobs at the firm would be cut and some offices will be consolidated.

The firm employs more than 3,000 staff in 40 offices and is one of the UK’s largest professional services firms. The restructuring programme is set to cost £6m.

One of the reasons for the poor results was the acquistion of RSM Bentley Jennison and certain assets of Vantis.

The report read: “We have concluded that the retructuring, cost savings and efficiency measures which followed these acquitsions were not sufficiently comprehensive and did not take full advantage of the potential synergies.”

The firm also appointed a new chief executive in Chris Merry who replaced Andy Rayner. Mr Merry joins RSM Tenon from financial services business Matrix Group.

Mr Merry said: “We have a clear action plan to drive near term profitability and cash generation. The majority of our revenues and cash generation arise in the second half of our financial year and this trend is set to continue.”