Addleshaw Goddard has made 31 business services staff redundant following a 30-day consultation. The move followed the announcement that net profit at the firm had dropped by 17 per cent for the 2010-11 financial year.
In addition to the redundancies further business services staff have resigned and others have not had contracts renewed, with the total headcount in the business services unit falling by 43 since the beginning of the year.
The number of redundancies made so far as part of the consultation is slightly lower than expected. In May, when Addleshaws announced that it was launching a redundancy programme, the firm said as many as 40 staff could see their jobs cut (The Lawyer, 24 May).
According to the firm, a number of staff whose jobs have been cut have applied successfully for other vacancies, as well as newly created roles in the firm. A small number of staff are still in consultation.
Addleshaws announced the redundancy programme following a 3 per cent drop in turnover, from £167.5m in 2009-10 to £161.9m in 2010-11. Net profit at the firm dropped by 17 per cent over the same period, from £41.2m to £34.4m, while average profit per equity partner was down by 23 per cent, from £426,000 to £328,000.