Simmons & Simmons is to lay off four associates and three business support staff in its Tokyo office after losing its two partners in the city to Lovells.

Corporate partner and office chief Rika Beppu, who has been with Simmons for 14 years, will become co-managing partner of Lovells in Tokyo alongside current head Lloyd Parker.

Fellow partner Philip Hyde, who has been based in Tokyo since 1997 and joined Simmons in 2003, will head up Lovells' local finance team. He advises investment banks on debt capital markets transactions, structured securities issues, derivatives and securitisation work.

The duo's departure date is still being negotiated. Simmons is set to move City corporate partner Jason Daniel to Tokyo to fill the gap.

Speaking to Legal Week, Simmons managing partner Mark Dawkins stressed that the firm was still committed to the Tokyo legal market through its joint venture with local firm TMI Associates. The firm is reviewing whether to relocate or hire further partners for its own office.

Following the departure of the two partners, Simmons will retain one associate, one trainee and one secretary, while four associates and three business support staff will be made redundant. Lovells was understood to be in talks about hiring two associates and one secretary.

The two Simmons hires follow Lovells' appointment earlier this year of an eight-strong team of bengoshi from local boutique Kubota Law & Patent Office, marking the firm's debut in Japanese law. Lovells decided to keep its Tokyo office in 2006 after a year-long review.

Crispin Rapinet, Lovells' Asia regional managing partner, told Legal Week: "We are seeing a lot of investment going into China, Southeast Asia and the Middle East at the moment – areas in which the Japanese have a lot of involvement.