Pinsents rolls out cost-cutting plans; Wragges to make up to 85 layoffs
Pinsent Masons has announced a package of cost-cutting measures in an effort to avoid widespread job cuts, while national rival Wragge & Co has launched a redundancy consultation that could claim up to 85 positions on the back of a poor financial year. Pinsents, which has yet to make any redundancies, confirmed last week (11 June) that a number of jobs are under threat despite a cost-cutting scheme that includes sabbaticals and part-time working.
June 18, 2009 at 04:42 AM
3 minute read
National firm announces measures to stave off job cuts; Wragges set for redundancies
Pinsent Masons has announced a package of cost-cutting measures in an effort to avoid widespread job cuts, while national rival Wragge & Co has launched a redundancy consultation that could claim up to 85 positions on the back of a poor financial year.
Pinsents, which has yet to make any redundancies, confirmed last week (11 June) that a number of jobs are under threat despite a cost-cutting scheme that includes sabbaticals and part-time working.
The firm hopes to keep job losses – which could affect fee earners and support staff – to a minimum, with other cost-cutting measures including the deferral of 25% of trainees due to join in September and a pay freeze across the board.
Pinsents is also planning to increase the number of lawyers on secondment from 30 to 50, with a number set to transfer to new alliance partner Salans.
Details of Pinsents' plans came as the firm posted a 1% increase in turnover for 2008-09, with revenues standing at £215m compared to £213m the previous year.
Wragges, meanwhile, has launched a programme of job cuts that could affect up to 85 people including fee earners, support staff and secretaries.
All practices in the firm's Birmingham and London offices are likely to be affected by the 30-day consultation. However, Wragges hopes most of those involved in the consultation will stay with the firm, with positions saved through other cost-saving measures under consideration such as four-day weeks, sabbaticals, unpaid leave, job-sharing, career breaks and extended maternity and paternity leave.
Staff remaining with Wragges will see their salaries frozen while newly-qualified rates are dropping from £63,000 to £57,000 in London and from £41,000 to £36,500 in Birmingham.
Senior partner Quentin Poole said that with less money coming into the business, the firm would have to find ways to reduce costs.
Wragges saw revenues drop by 17% during 2008-09, with turnover falling from £125.6m in 2007-08 to £104.3m. The firm is yet to finalise its average profits per equity partner, but early indications suggest a dip of around 30% from last year's figure of £483,000.
Poole commented: "This is a redundancy consultation, but we regard redundancies as a last resort and we are working with all of our people from now to find innovative and creative ways to find other solutions such as sabbaticals and four-day weeks. This will not be something imposed through a top-down approach but will be based on the ideas of each practice group and what works for them."
City firm Macfarlanes also launched a redundancy consultation last week (10 June).
The consultation, which marks the firm's second round of cuts, sees 15 jobs under threat, with 14 support staff including secretaries affected as well as one professional support lawyer. The bulk of those facing the axe will come from corporate and central resources.
Macfarlanes made a number of cuts which affected seven real estate fee earners and seven secretaries across corporate and property in January.
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