Pinsents to launch redundancy talks
Pinsent Masons is looking to launch redundancy talks after announcing a turnover rise of 1 per cent in the last financial year.
The firm’s turnover rose from £213m in the 2007-08 financial year to £215m in 2008-09. Managing partner David Ryan (pictured) said that, while the firm has been taking measures to avoid job cuts, redundancies are now inevitable.
Ryan wrote to staff yesterday with a seven-point plan that laid out proposals for part-time working arrangements and sabbaticals, increasing staff deployment between offices, increasing client secondments, reducing costs, implementing a pay freeze and making job losses.
In six weeks’ time the firm will review how many jobs will need to be cut. Ryan was not able to confirm the anticipated total number, but confirmed that it would be “minimal” and based upon “a capacity rather than a costs perspective”.
Ryan said: “We’ve trialled part-time working and sabbaticals and several people have taken it up. Now everyone can take it up according to client and business needs. It could be short-term sabbaticals - even one week at the end of a transaction.”
The plan also includes elements that have already been implemented such as voluntary trainee deferrals, which were taken up by 26 per cent of future joiners (1 May 2009).
The firm’s annual 1 July pay review will be suspended for 12 months and newly-qualified lawyers starting in September 2009 will earn less money than the £64,000 currently offered to this year’s NQ group.
In terms of the firm’s financial results, Ryan highlighted particularly strong performance in outsourcing, technology and commercial and projects, but a more challenging year in certain areas of real estate and corporate. The firm has yet to announce a profit figure, although this is expected to be less than last year.
Ryan said: “We’re pleased with the results given that we had a tough last quarter. Profits will be reduced as a result of investment in Dubai, which has grown 50 per cent in revenue, a number of lateral hires and the upgrading of our IT systems.”
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Readers' comments (19)
Anonymous | 11-Jun-2009 4:20 pm
uuuhooo.
Here we go again!
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Anonymous | 11-Jun-2009 5:33 pm
The partners take a 5% pay cut and everyone keeps their jobs. Simple.
Oh sorry, nodded off there.
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Anonymous | 12-Jun-2009 9:24 am
Here, here!, surely it's about time equity partners started to bear the brunt. With all the talk of redundancies within the last six months I don't think we've seen talk of partners drawings being reduced. Surely the lynchpin of any business is it's leaders and any example should be led from the top, if not respect is lost.
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Anonymous | 12-Jun-2009 10:14 am
At the risk of repeating this sentiment, it seems that in the real world businesses shed jobs when they makes losses or there is a very severe drop in profits. What is remarkable in the la-la land of law, law firms stick the knife into staff when these firms are still making very healthly profits. What is clear is that partners consider that their drawings should be recession proof. It is a shame that the concept of partnership - that which takes the profits in the good times but the losses in the bad does not apply here. Here partners take the profits both ways and the employees take the pain.
Continuing with said rant, it comes as no surprise that Pinsents have taken so long to shame-facedly admit to going down a redundancy route, since for ages it has been characterising its cull behind "performance managed" exits...which achieved the same aim but less cost and embarrassment for the firm but with the opportunity to kick loyal staff in the teeth really hard. Beautiful.Come on equity partners - if you can't get the work in through the door - fall on your own swords - it is you who should be blamed not the employees. If there are capacity gaps - look in the mirror. Take a BIG pay cut. Go on - it's because you're worth it.
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Anonymous | 12-Jun-2009 12:11 pm
Thank goodness I got out of private practiceyears ago and joined central govt. Now I keep being called by "development partners" asking me out for lunch to discus our "current legal needs" (yawwnnnn have we any use for a free secondee perhaps!) - as if they think we were born yesterday - (btw don't call us we'll call you - it really makes no difference how many portions of luke warm salmon we have eaten in your board rooms) but I suppose you cant blame them for trying. But as for falling on your swords - no, that in my experience has always been the sole solemn duty of the expensive assistant - with a mortgage and young mouths to feed - not your equity partner with more cash in the bank than he knows what to do with.
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Anonymous | 12-Jun-2009 2:04 pm
As a in-houser with a major global corporate which has potential huge external counsel spend, I very much look at the behaviour of these equity partners when I instruct external counsel and how staff are treated. These partners are still banking significant amounts, yet they think that it is perfectly acceptable to cancel the livelihoods of their staff. Partners - start having some moral fibre and stop being so self centred. Or the worm will turn...
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Anonymous | 12-Jun-2009 2:17 pm
shame....all that profit made and when you do the maths redundencys are not required. (apart from the dead wood departments.
perhaps over the next 6 weeks they will rethink this stratergy and improve on what was suggested.
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Anonymous | 12-Jun-2009 5:05 pm
To those assuming that the partners are sitting pretty with their full drawings, how do you know that they have not already borne the brunt with a cut in drawings?
At the one firm in London of which I have inside knowledge, the salaried partners have all taken cuts of at least 20% whilst the equity partners have taken bigger hits.
The same could well be true of Pinsents.
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A. Gullible Reader | 12-Jun-2009 5:17 pm
OMG WAT A BACKLASH!!!111 This is quite literally the most backlashiest backlash EVAR!
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Anonymous | 12-Jun-2009 5:27 pm
Yeah yeah. 20% off some pretty big figures. How about 100% cut when you lose your job mate. These guys also have plenty in the bank. Don't kid yourself. Maintaining the PEP is the holy grail. Like poor Michael Owen having to take a 60k per week pay cut. My heart bleeds that he now only picks up 70k a week. It is so tough.
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