Linklaters to axe up to ten per cent of partnership in new restructuring
Linklaters is set to cull over 30 partners across the network as part of the firm’s biggest round of layoffs since the New World restructuring in 2009.
Linklaters is set to cull over 30 partners across the network as part of the firm’s biggest round of layoffs since the New World restructuring in 2009.
The Lawyer has learnt the names of several partners who have already been asked to leave. It is understood that the focus of the shake-up is on London but that between 10 and 15 per cent of the worldwide partnership could be at risk.
The restructuring was confirmed to London partners last week, with both exits and de-equitisations on the cards.
A source close to Linklaters said: “The view is that it’s being done because the firm is too big for the market. The markets aren’t going to return any time soon so we need to resize. It’s a hard decision.”
A Linklaters spokesperson said: “We continually look at our business and partner base in the context of the markets and our clients’ needs. A natural part of this process includes some new partners joining and some partners moving on.
“Decisions about partner retirements are entirely personal to the individual partner and it is therefore inappropriate to comment on speculative numbers involved. Where decisions are taken by the firm, they are taken reluctantly and only ever in the long-term interests of the firm.”
The magic circle firm axed 70 partners and 10 per cent of associates in 2009 as part of the New World restructuring (23 January 2011).
Last month The Lawyer revealed that Allen & Overy had starting managing its equity against after a two-year pause, with 1-3 per cent of partners pruned out.
View results 10 per page | 20 per page | 50 per page
Readers' comments (34)
David | 8-Dec-2011 9:55 am
Linklaters isn't the only major partnership that could do with this sort of treatment.
Unsuitable or offensive? Report this comment
Angel eyes | 8-Dec-2011 10:11 am
So when are CC and Freshfields going to do this?
Unsuitable or offensive? Report this comment
Anonymous | 8-Dec-2011 10:15 am
This is surely the biggest sign yet that the profession is being sucked back into recession. There have long been predictions that the profession would have to shrink to be more efficient, many believed this would be led by the collapse of the high street but the recession has meant that everyone is having to 'share the pain'. Rather than cutting jobs to save the livelihoods of the elite few, perhaps those at the top might consider taking a slight paycut? I mean, doesn't it say on The Lawyer that Links paid its highest earning partner £2.2m last year?
Unsuitable or offensive? Report this comment
Anonymous | 8-Dec-2011 11:15 am
Interesting that the firm is talking about partners 'retiring' rather than owning up to 'redundancies'. And, being the caring place it is, Links also says that its up to the partners to decide when they retire. That is blatantly untrue as the firm is basically forcing retirement on the more mature partners. One wonders whether we could see more cases for age discrimination here?
Unsuitable or offensive? Report this comment
TheLawMap | 8-Dec-2011 11:49 am
These are worrying times and a large firm such as Linklaters to be engaging in 'voluntary retirement' signals how badly the industry is affected.
Unsuitable or offensive? Report this comment
Anonymous | 8-Dec-2011 11:49 am
This may be shocking but it's really not a surprise. What was really a surprise was the UK firm's half-year figures. In the current economic circumstances how can some firms post double-digit increases in revenue? For such a transactionally heavy firm as Links there is simply no real sign of daylight on the gloomy horizon...
Unsuitable or offensive? Report this comment
Thomas Verhoeven | 8-Dec-2011 12:20 pm
It only shows that all these firms are longer "partner"ships but money making vehicles only where the term "partner" is unknown. In good old days a partnership would adjust by tightening the belt of each partner until the bad times are over. Now so-called partners are kicked out.
Unsuitable or offensive? Report this comment
PtL | 8-Dec-2011 12:35 pm
It's a London problem. Nearly every firm is way too heavy there. That's not cyclical, it's structural.
Unsuitable or offensive? Report this comment
Petroboy | 8-Dec-2011 12:38 pm
So we can soon expect a glut of CVs from Links partners "just, ah, looking for a change of pace "....
Unsuitable or offensive? Report this comment
Hugey | 8-Dec-2011 12:55 pm
When I called the second downleg the response was all too predictable. Yet firms have been cutting continually since 2009. Fear not, there are several more years of this to come.
Unsuitable or offensive? Report this comment