Cobbetts is extending its part-time and flexible working arrangements in a bid to stave off further redundancies.

The firm said the measures will affect all fee earners and support staff across transactional practices, with only those working in dispute resolution and private capital remaining unaffected.

Cobbetts previously had a number of fee earners in its corporate practice operating on a four-day week; however, the new measures also include options such as job shares, sabbaticals and extended holidays at reduced pay.

Managing partner Michael Shaw stated: "Having reassessed the projected market activity after the summer, we have taken the view that transactional activity levels are likely to remain relatively low in the short-term, although there are signs that may suggest a medium-term lift.

"Introducing these measures will allow us to ensure that our ongoing expenditure is balanced against revenue until transaction levels start to increase, while retaining the very talented people we have within the business."

The firm has conducted three redundancy rounds, with its most recent, in October, affecting 61 fee earners and support staff. A poor financial year, in which revenues fell by 16% to £48.5m during 2008-09, meant the firm has dropped out of the UK top 50 rankings by turnover.

Shaw added: "We are determined to emerge from the current global downturn as a strong and competitive business, and these types of decisions are a difficult but vital element in that process."

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