Financial services giant KPMG is to offer staff a four-day working week or sabbatical breaks in an attempt to stave off redundancies.
All employees will be offered the chance of taking a break from their jobs ranging from one to three months on 30% pay, or they can opt for a shorter working week.
KPMG's 11,000 staff were told of the offer earlier today, and will have until the first week of February to make a decision.
The offer is on a voluntary basis, KPMG confirmed.
A KPMG spokesman said: "We have offered staff the possibility of a four-day working week or sabbatical leave periods. We are mindful of the difficult conditions that everyone is operating in."
A company spokesman said it was impossible to rule out job cuts in the future. He said: "This move gives us some flexibility to manage the workforce.
"It helps us to avoid the need of making any redundancies."
But the move from KPMG will be seen by analysts as a further reflection of the shockwaves rippling through the City in the wake of the credit crunch.