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Categories:Insurance/reinsurance,Scotland

DLA Piper to shut Glasgow and offload defendant insurance teams as redundancy talks continue

24 January 2013 | By James Swift

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DLA Piper has confirmed that it will shut its Glasgow office in the coming months and is on the cusp of agreeing deals with takers for its defendant insurance practices following the conclusion of a collective consultation.

The firm has also announced that it will retain a small document production unit in each UK office, meaning that fewer staff will face the axe than was expected when the firm first revealed news of job cuts at the end of 2012.

DLA Piper announced in November that it had put 251 staff into redundancy consultation following a review of its domestic business (13 November 2012). It is one of the UK legal market’s biggest rounds of lay-offs since 2008

At the time, a spokesperson for DLA Piper said the firm was considering shifting its multi-site document production unit onto one site, but following a collective consultation the firm has decided to keep a small presence in each UK office, although the majority of roles in the unit will still be moved to Leeds in a bid to keep costs down. This centralisation of the document production unit will take place over the next six months.

DLA Piper has also confirmed that its Glasgow office will shut before 30 April – the firm’s financial year-end. It is anticipated that the Glasgow office’s 10 partners will relocate to the firm’s Edinburgh office, where there are also 30 jobs available for fee-earners and staff. The firm has around 75 stafff in its Glasgow base at present.

The firm’s defendant insurance practice, which is based across the firm’s offices in Birmingham, Manchester and Sheffield, looks set to be acquired by two separate entities, with parties expected to agree on a deal in the coming weeks.

It is not yet known how many fee-earners and staff will lose their jobs as a result of the changes, since individual consultations are yet to complete. However, a spokesperson for the firm said that the redundancy package would be individual notice period plus three months net pay and benefits.

In a statement, a DLA Piper spokesperson said: “Our collective consultation has concluded and we can confirm that we will be closing our Glasgow office, divesting our defendant insurance practice and consolidating our current multi-site document production unit.”

Earlier today Eversheds announced that it has put 166 staff into redundancy consultation and is planning to close its Copenhagen office (24 January 2012).

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Readers' comments (12)

  • Anonymous | 24-Jan-2013 3:37 pm

    Today is 'Black Thursday'. Traditionally the most miserable day of the year, in 2013 it's the day the big firms are announcing their cuts.
    I suppose the (remaining) junior fee earners in Dickinson Dees and Bond Pearce are very nervous this afternoon.

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  • Anonymous | 24-Jan-2013 5:15 pm

    3 months net pay is hardly the generous package DLA promised, especially considering they are opening new offices in Africa and South Korea, and have been throwing extravagant parties in Edinburgh. Very poor.

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  • Anonymous | 24-Jan-2013 6:01 pm

    Why do have to endure yet more snippy unfounded comments about Dickinson Dees?

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  • Anonymous | 24-Jan-2013 9:47 pm

    Ever increasing, even here in South Africa. The operational requirements of the employer would allways be questioned but fairness during the consultation process must play a pivotal role before finalization of the process. Good luck there in the UK.

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  • Worcester Tosh | 25-Jan-2013 8:25 am

    At least the Partners will have something to talk about when they "lease" a cruise ship around the Med for their conference.
    At a cost of close to £1m I'm sure that could have been better spent.

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  • Anonymous | 25-Jan-2013 9:07 am

    It's also pretty shabby tax planning (or DLA trying to be cheap). On the limited facts above i can't see any reason why the redundancy package can't be paid to them gross (as long as it's under £30k). Perhaps, DLA tying to save a few pennies?

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  • Anonymous | 25-Jan-2013 9:51 am

    The Great Angel Vision

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  • Anonymous | 25-Jan-2013 11:09 am

    Anon 6:01, I'm not sure what snippy is. However just to assuage any paranoia, I simply chose Bond Pearce and Dickinson Dees as they've recently announced a merger.

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  • Anonymous | 25-Jan-2013 12:08 pm

    Any thoughts as to where the respective insurance teams are heading? They are a class team and deserve better , especially as they were persuaded to stay when DLA Manchester defected to open Barlows Manchester office. My guess is Kennedys or Clyde's?

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  • Anonymous | 25-Jan-2013 2:47 pm

    I don't think that sounds like a bad redundancy package and presumably the insurance team will find themselves at a firm more suited to their business. Some streamlining seems inevitable across the industry - just ask Bryan Hughes.

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