Quarter of UK top 50 could make job cuts in H2

Almost a quarter of the UK's top 50 law firms are considering making redundancies in the current financial year, with 10% saying cuts in the next six months are probable.Five of the UK's top 50 law firms are anticipating job losses by the end of the financial year, saying job cuts were either 'likely' or 'very likely', according to research by Legal Week. An additional 12% said cuts were 'possible'. Not one firm in the top 50 would rule out redundancies altogether.The news comes as Hammonds emerges as the latest firm to make redundancies. The top 30 law firm launched a redundancy consultation earlier this week (4 November) which is likely to affect a number of fee earners and support staff, across all offices in real estate and corporate.Hammonds joins firms including Clifford Chance, DLA Piper, Eversheds and Simmons & Simmons in making redundancies, bringing the number of top 50 firms to cut jobs to a third (32%). So far more than 350 jobs in the top 50 are thought to have been affected by cuts, with real estate the worst affected practice group. Cobbetts and Dickinson Dees have so far confirmed the most severe cuts, with 69 and 64 jobs respectively under threat.Hammonds managing partner Peter Crossley commented: "This is a matter of real personal regret for me. However, in the current climate you have to look at anticipated market conditions during the next six months. There is a lot of uncertainty out there so we are taking a cautious view of the way ahead."However, the survey, which was carried out under condition of the firms remaining anonymous, also revealed that 28% of respondents thought it 'unlikely' that redundancies would become a reality, while 4% said lay-offs would be 'very unlikely'.Shilton Sharpe Quarry director Gavin Sharpe told Legal Week: "Law firms are often late in the process when making cutbacks in comparison with the banks. So far this year, many have been doing their utmost to redeploy their staff but come the first quarter of the next calendar year they will not have much choice but to make substantial cuts to their business - although I hope I am wrong."Seven firms refused to comment on the question altogether. They are Linklaters, Clyde & Co, Irwin Mitchell, Burges Salmon, Mills & Reeve, Maclay Murray & Spens and Watson Farley & Williams.

November 06, 2008 at 10:54 AM

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