Lyons Davidson makes 50 redundancies in wake of AA tie-up

Bristol-based firm Lyons Davidson expects to make 50 redundancies despite securing a number of recent high-profile alternative business structure (ABS) tie-ups.

the aa

The firm said the redundancies are thanks to changes in the civil litigation system, suggesting that the reforms introduced by Lord Justice Jackson are responsible for the cuts.

Managing partner Mark Savill said in a statement: “The cost pressures that come from the fee and rule changes require us to operate our core personal injury work in our more efficient and economic teams around the country.”

He continued: “Structural changes in the market unfortunately mean that we have been unable to avoid this review.”

The latest redundancies are the second for Lyons Davidson this year, which reportedly cut a number of staff roles in its employment practice in February.

The news comes just weeks after the firm announced its new joint venture with motoring organisation AA, which became the latest company to secure ABS status (5 November 2013). AA Law, which is due to start trading on 1 December, will initially handle personal injury work and other litigation associated with accidents suffered by its members.

Earlier this year, Lyons Davidson also partnered with FTSE 100 insurer Admiral to create Admiral Law alongside Cardiff-based compensation firm Cordner Lewis (8 April 2013).

The firm insisted that it has seen a 10 per cent growth in staff this year, with its headcount increasing from 1,400 to 1,500 in total.

It declined to comment on whether the redundancies would affect fee-earners or support staff, or the stage of the current consultation.