Clifford Chance to cut City associates in response to 'low NQ attrition'
Clifford Chance is set to axe a string of associates in London, in the latest sign that top-level firms are feeling the pinch from the economic downturn.
David Bickerton
The firm is in consultation with 13 City lawyers in the capital markets and finance practices, with the full number at risk of redundancy.
The firm said the proposed redundancies reflect a drop in the firm’s attrition rate, with the latest cohort of trainees and newly qualified lawyers set to join imminently.
London managing partner David Bickerton said in a statement: “We’re proposing to make a small number of lawyers redundant in London. Our business is very strong and resilient and we continue to grow.
“However, our attrition has fallen significantly and we have a programme of trainees and new qualifiers coming through.
“It’s important to ensure that our resources are in line with the business needs. We’ve not taken this decision lightly.
“We anticipate a maximum of 13 redundancies out of a total of nearly 1,000 fee -earners in London and we have no plans for any more.”
The associates affected have been informed and are currently in talks with management.
The cull is limited to London and is significantly smaller than the 2009 round, in which 80 associates were axed (8 January 2009).
The magic circle firm has, however, already vowed not to restructure its partnership following rival Linklaters’ move to axe a large proportion of its equity partners (9 December 2011).
Linklaters has already axed tens of partners in London (8 December 2011), while Allen & Overy has admitted to cutting between 1 and 3 per cent of its equity partners (28 November 2011).
Linklaters, meanwhile, has confirmed cuts in its London support-staff team, with a spokesperson commenting: “We can confirm that, reluctantly, there have been a small number of headcount reductions in business services in the UK.”
View results 10 per page | 20 per page | 50 per page
Readers' comments (27)
Anonymous | 25-Mar-2012 4:15 pm
Many businesses cull the bottom 10 percent performers, even in good times. So to make less than 1 percent redundant now, why should that even have to be justified?
Unsuitable or offensive? Report this comment
dragonfly | 26-Mar-2012 5:37 am
Interesting approach to a redundancy program....can low attrition really be used to justify redundancy in law or is this one of those "other significant business reasons"? And surely there may be a hint of age discrimination at least indirectly as the new qualifiers are likely to be younger than the experienced associates.
Unsuitable or offensive? Report this comment
Anonymous | 26-Mar-2012 11:42 am
"If there's no work then why the retention of NQs?"
Because NQs are cheaper than senior associates. Have no doubt all the lawyers being canned by CC are senior associates.
For all intents and purposes CC is taking an up or out approach to senior associates. It was already like this in the boom times, its just the seniors who weren't going to get promoted would jump into a lateral position; now they need to be pushed.
Is it moral or pleasant? No.
Is it typical? Yes - CC's peers and clients in the banking sector all take the same approach.
If some firms need to shrink to become maintain profits that is what they will do. Partners only care about profits. Anyone who wants a pleasant and collegiate working environment should avoid City law firms. Better to apply for a job at Google.
Unsuitable or offensive? Report this comment
Anonymous | 28-Mar-2012 1:11 am
Why do partners only care about profits? Surely there is more to life? Is the City a temple to greed? What does that achieve? Are their children proud of them? Do their children even know who they are?
That's depressing.
Unsuitable or offensive? Report this comment
Anonymous | 28-Mar-2012 8:12 am
This is awful - absolute disgrace. Can this even be deemed true "redundancy" circumstances?
Unsuitable or offensive? Report this comment
ex-Bank Street | 28-Mar-2012 1:38 pm
who cares. they're from CC, there's plenty of work around and they'll get new jobs. It's not the end of the world. Good luck to the newbies and keep an open mind about broader opportunities than just CC. It works both ways.
Unsuitable or offensive? Report this comment
Christina Bryan | 2-Apr-2012 4:51 pm
"Zebra Crossing" - Fear not, I am here. I do not justify everything CC does, just my point regarding Peter Charlton. After working for CC for over 22 years, I am well aware that there are many CC actions that do not require justification. And also that there is a very nice world outside CC.
Unsuitable or offensive? Report this comment