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.
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Readers' comments (34)
Anonymous | 9-Dec-2011 5:02 pm
to "Anonymous 9-Dec-2011 4:14pm"
or, you could not bother at all, enter a profession you could enjoy, work reasonable hours and be a success in your life outside of the workplace... just a thought...
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Anonymous | 12-Dec-2011 5:24 pm
In Newcastle, we can't understand the logic of Linklaters.
Surely everyone (including the caretaker, every assistant and every associate) should be made redundant before even a single partner is asked to leave?
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Anthony Coleby | 13-Dec-2011 11:20 am
The deal was always that you spent 8 years or so sacrificing everything for the partnership offer. When the offer came, there was a justification for the tough years and recognition plus financial security for the rest of your working life. That deal has gone now and I have difficulty in seeing why people are still prepared to put themselves through all that any more.
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Anonymous | 14-Dec-2011 11:28 am
The deal?
For centuries, the legal profession brought people into equity after about three years (although it took a lot longer to qualify).
In the mid-1990s, the mindset changed and partners realised they could pull the ladder up after themselves and make big profits.
Since then there hasn't been a deal. Making Partner just gets you onto a bigger and faster moving hamster wheel.
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