Addleshaw Goddard has launched a firm-wide restructuring, which is expected to see 85 non fee-earners lose their jobs, fee-earners work reduced hours and salaries cut.
The consultation with 85 members of support staff, which was launched last week, will affect all offices and business services teams. It is expected that broadly equal numbers of secretarial and business services staff will lose their jobs.
This is the third round of job cuts the firm has made in the last year, following the exit of 19 partners earlier this year (21 January) and 16 redundancies, including two fee-earners, last summer (13 October 2008).
The firm does not anticipate having to part company with any more fee-earners or partners as a result of this restructuring. A spokesperson said: “We’re hoping that the whole package of measures will help minimise the need for further redundancies.”
Instead fee-earners will be consulted on “the possibility of sabbaticals, buying additional holiday and the option of introducing reduced working hours,” the spokesperson added.
In addition, the firm has frozen salaries at 2008-09 levels for all fee-earners and support staff, with the next salary review not expected to take place until 1 May 2010.
In an emailed statement newly-appointed managing partner Paul Devitt said: “Our priority during this sustained downturn is to continue to manage our firm in a way which is appropriate for us and our clients. We addressed overcapacity in the partnership earlier this year and with conditions remaining challenging, we now need to address our wider resource and cost base.
“These decisions have been reached only after the most careful and thorough consideration and we’re giving as much support as we can to the affected individuals. We’re confident that the full range of measures being proposed, and decisions taken, will help to keep the number of roles `at risk` to a minimum and will minimise the need for any future similar announcements.”
Devitt added: “Our business remains in a strong position, and in addition to responding to current conditions, we continue to plan and invest appropriately for the future.”
Trainees will also have their salaries cut nationwide, but training contracts will not be deferred (18 May).
Addleshaws & the other major players are becoming very akin to a modern day sweat shop. The associates are worked to the bone and then discarded like the workers from the mills in the past, or are being “forced” to accept new voluntary terms.
All Partners should be holding their heads in shame at these proposals and instead consider taking a 25% pay cut each you can well afford it. The associates have worked hard for you give them a break. When the good times return we will remember you.
Anon (19 May 3.24pm) clearly doesn’t follow the legal news closely. Addleshaws was one of the first firms to address over capacity in the downturn by taking 19 partners (over 10% of the partnership) out of the business, before anyone else’s role was looked at. These proposals look practical and sensible to me – for those who are in teams with litte to do they safeguartd a job when the alternative is redundancy. Or does ANON live in never-never land where everyone can have a job whether or not there is any work to do? Get real.