Eversheds CEO: "Everything we've done has had culture at the heart"
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Eversheds chief executive Bryan Hughes has told The Lawyer in an exclusive interview that “everything we’ve done has had culture at the heart”, as news broke that 166 staff at the firm face the axe.
Bryan Hughes
Hughes made the comment about culture, adding that it was the most important thing about the firm, to The Lawyer in a video interview for the Hot 100, which celebrates industry leaders and is published on Monday.
His comments come as the firm announced that 166 staff – 82 lawyers and 84 non-lawyers – across the UK, Asia and Copenhagen are at risk of losing their jobs as the firm seeks to align itself under its new three-year strategy (24 January 2013).
In addition to the comments about culture, Hughes said in the Hot 100 interview: “We celebrate our own differences and like to set our own standards,” adding that: “A lot of the international part of our business, it’s still in investment mode and we need to get it into return mode.”
The latter comment sheds light on the firm’s decision to make global managing partner Lee Ransion interim managing partner of Asia, replacing Nick Seddon, who will leave the firm. The structural changes come as Eversheds looks to bring its Asia offices in line with the rest of the business.
In a statement, the firm said: “Our current management team were tasked four years ago with establishing the Eversheds brand and achieving critical mass. This has been successfully achieved. The next stage of our journey in Asia is to drive closer integration with the rest of our global business and continue to invest in high calibre front-line practitioners, in particular in corporate, finance and litigation. We’re reorganising our local management structure in light of these priorities.”
Eversheds also looks set to close its Copenhagen office, which is part of the firm’s UK LLP, as part of the review, following tepid demand from clients. The firm said that it was in tie-up talks with another local practice, which may give some Eversheds staff the chance to over to the local practice.
“The reality is that our [Copenhagen] office didn’t have a large share of the market and depended on referrals from other offices, and the demand from clients from other offices was not significant,” said Hughes, speaking to The Lawyer yesterday.
Speaking about Eversheds’ previous redundancies, which saw 735 staff lose their jobs amid four rounds of cuts between 2008 and 2009, Hughes told The Lawyer in this week’s feature: “You don’t have to make unpopular decisions [to be a law firm manager] but you do have to make the right decisions. I’m in the role to protect and sustain the business. If you can’t make difficult decisions you shouldn’t be in the job.”
Readers' comments (21)
Anonymous | 25-Jan-2013 11:15 am
What a strange comment. The killing fields were carried out to change culture, but it didn't make it right.
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Tony frost | 25-Jan-2013 1:37 pm
Its not wrong or right these decisions are being made across most industries, they unfortunately have to be made.
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Anonymous | 25-Jan-2013 1:37 pm
So is it fair to assume that the people who are made to leave are those who didn't fit in the culture Eversheds wants to have? Nothing to do with money, business and greed?
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Robbie Burns | 25-Jan-2013 2:14 pm
Why are we so surprised every single time a law firm sacks a load of its staff to boost partner income, while spinning the line about how they 'care' etc etc?
In some ways it's endearing that people still think law firms, and their owners (i.e. equity partners), are not in it to make as much money as possible before they keel over.
If this was a banking magazine there would be very few people bemoaning the fact that staff had been sacked - as they would expect it from that industry.
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Anonymous | 25-Jan-2013 2:23 pm
that's a funny way of spelling money
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Headhunter | 25-Jan-2013 3:31 pm
Hughes is full of trite. Crawl back into your SHED! We know what Eversheds are, a low margin, high volume business, that pretends it is profitable by holding equity tight and culling a hundred plus support staff/associates every year. When was the last time a big client gave a big big bit of work to the sheds. Oh yes, never.
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Anonymous | 25-Jan-2013 3:46 pm
Saying these redundancies were made to give partners a higher pay package is pure speculation, and quite unwarranted. Why would they then give out higher redundancy packages, taking away from their profit, whilst increasing their own work load? For whatever reason these cuts were made, at least the firm is still running keeping some people employed.
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Anonymous | 25-Jan-2013 3:50 pm
Eversheds aren't doing anything different to most other companies within the industry. Plenty of companies are doing the same at the moment - the financial climate is still in dire straights. It's a case of pack up your desk and get on with it. I don't see why they should be highlighted when they aren't alone.
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Anonymous | 25-Jan-2013 4:17 pm
Thanks for your input Eversheds PR co @ 3:46 & 3:50...
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Anonymous | 25-Jan-2013 4:42 pm
“Without going into the rights and wrongs and pointing fingers, sadly this isn’t the first or last we have seen or will see of this. Small comfort though it may be for those affected, we are seeing a few shoots of optimism in the market and increased investment in recruitment among our clients. We have a strong track record of helping those affected not just find a new firm but find the right new firm. The key is to act fast. Do get in touch for advice.”
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Anonymous | 25-Jan-2013 8:23 pm
Anonymous 4.17; I work for a major investment bank that is going through a similar thing at the moment - hence my comment.
It's not just law firms, or indeed Eversheds - redundancies and job cuts are everywhere, you just need to look at your local high street to know that. And your shop worker in jessops earns a lot less and would have received little-zero package compared to what you (I assume you are a disgruntled former employee) have done.
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Richard | 25-Jan-2013 8:48 pm
Headhunter: an article I read earlier in the week stated:
“People say that the firm does just second-tier work but you wouldn’t get to the level of PEP that Eversheds has if that were true, even if the firm is flattered a little by its ratio of equity to non-equity partners. It has an impressive roster of FTSE clients, too. It’s not on the bet-the-farm stuff, but it’s still a list that a lot of people would die for. It has clients such as Boeing, Du Pont, Volvo and Smiths Group, which are demanding companies and won’t put up with a firm that is not delivering.”
Personally, I wouldn't want to say any of the above named companies weren't "big clients", and as this article states, would these guys really want to give their business to Eversheds if they were really "just pretending" as you put it. I'm sure they must be doing something right.
Maybe have a quick check of facts before you spout off.
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tony frost | 26-Jan-2013 8:26 am
HEADHUNTER are you 5 years old? if you actually have a job do you anonymously bitch about your bosses in this childish manner - i bet you were the schoolboy bully.
Wake up and smell the coffee the whole country is under threat from cutbacks we are in about year 6 of a 3 year recession.
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Fran Shaefer | 26-Jan-2013 10:28 am
I agree! So what is different about Evershed’s. Try Allen and Overy, DLA Piper, Farrars, Addleshaws , Lawrence Graham and all the other law firms who are in the same position worldwide? It’s called an economic depression. What about the ex chair of RBS or the FSA ? They all legged it. Hughes at least has the b@@@s to manage the issue and face people.
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Anonymous | 26-Jan-2013 7:00 pm
It's one thing to be "reorganising" (sacking people) in order to adjust to market conditions, it's quite another to be firing a large swathe of employees every single year since 2008. The management of Eversheds need to ask themselves what is it that is so rotten at the firm that means it has to sack over 100 staff even after "restructuring" (firing 700+) owing to market conditions in 2008.
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Noah | 26-Jan-2013 9:12 pm
Interesting how this publication was praising Eversheds not so long ago, calling Bryan Hughes "the man with a plan" and this week they are putting the boot in because of cuts that the whole industry - in fact the whole City are making!
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Richard | 26-Jan-2013 9:17 pm
Anon: 11.15. Comparing the murder of over 1 million people to 166 people being made redundant. Really???? Not quite the same league is it. Lets get this into perspective!
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Anonymous | 27-Jan-2013 11:48 am
Eversheds is a genuinely visionary firm with a culture that even Magic Circle firms aspire to. Just because a very small percentage of their work is volume domestic conveyancing, repossessions, and debt collecting, does not mean that they do not have a global reputation.
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Anonymous | 28-Jan-2013 10:50 am
“Without going into the rights and wrongs and pointing fingers, sadly this isn’t the first or last we have seen or will see of this. Small comfort though it may be for those affected, we are seeing a few shoots of optimism in the market and increased investment in recruitment among our clients. At QC Legal, we have a strong track record of helping those affected not just find a new firm but find the right new firm. The key is to act fast. Do get in touch for advice.”
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Anonymous | 28-Jan-2013 12:37 pm
Sorry, but what is this culture exactly? How is it 'visionary' (Eversheds equity partner, sorry, Anon 11.48am). And there is nothing visionary about making (good) people redundant for heavens sake! Don't insult the people that are losing their jobs (oh, this was a visionary move, part of a visionary strategy-please! Double-speak!).
Anyway, let's see where it all goes in the end.
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greg accor | 29-Jan-2013 3:30 pm
This has to be the most difficult decision a company has to make.
I notice that there is a twitter from another company offering the leavers jobs already - that would be karma - excellent package and a job! give me some of that!!
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