Addleshaw Goddard has cut 19 from its partnership after deciding it has too many partners for its business needs.
Each of the firm’s three offices and all practice divisions are affected by cuts. The partners concerned are expected to leave the firm within the coming months.
Managing partner Mark Jones said: “This was a very difficult decision, but, in common with many other businesses, we believe it’s a necessary response to the economic slowdown and changing requirements of some clients.
“Each of the partners affected will be receiving our maximum support. Our business is in a strong position, and well positioned in its markets. By acting now, we believe we’ll be appropriately resourced to meet our future ambitions and the ongoing needs of our clients.”
A spokesperson for the firm defended the choice to promote nine to the partnership last year, saying: “Nobody had a crystal ball. We looked at the marketplace [now] and feel it’s the right decision for the business going forward.”
He added that the firm will be going through the partnership promotion process this year “as we normally do”.
This follows on from job cuts at the firm last summer in which Addleshaws made 16 redundancies – the highest single number since 2003 (13 October 2008).
At the end of the last financial year Addleshaws had 177 partners, including 107 equity partners.
Turnover for the first six months of the 2008-09 financial year was four per cent below budget (4 November 2008 ) with Jones commenting: “If we achieve last year’s fee income number [of £195.4m for the 2008-09 full year], I’d be delighted. But I think we’ll be a bit down.”
For more on legal redundancies and job prospects, see our Legal Job Watch page.