Addleshaws to cut up to 40 jobs in comprehensive firm restructuring
Addleshaw Goddard is set to cut up to 40 jobs across its business services function, with the redundancies coming against a backdrop of falling revenue and profits and an overhaul of its management and operational structure. The national firm has launched a 30-day consultation with all those at risk of redundancy in its business services division. The consultation is expected to lead to up to 40 job losses. No fee earners will be affected by the cuts.
May 24, 2011 at 05:48 AM
3 minute read
Addleshaw Goddard is set to cut up to 40 jobs across its business services function, with the redundancies coming against a backdrop of falling revenue and profits and an overhaul of its management and operational structure.
The national firm has launched a 30-day consultation with all those at risk of redundancy in its business services division. The consultation is expected to lead to up to 40 job losses. No fee earners will be affected by the cuts.
The cuts come as the firm has confirmed a 3% dip in turnover for 2010-11 to £162m down from £167.5m and profit for the year of £34.4m. Working out profit based on the number of partners during the previous financial year this equates to a drop in profits of around 15% on last year, when the firm had 95 equity partners and an average profit per equity partner of £426,000.
Separately, Addleshaws is spinning off most of its non-partner services and costs into a newly-created service company, which will be a subsidiary of Addleshaws' limited liability partnership, in a bid to become more tax efficient. The firm said the move was particularly aimed at reducing exposure to the new 50% higher rate of income tax.
The structural changes come as Addleshaws moves to overhaul its management structure by merging together its governance board and executive leadership team into a single board.
In addition, the firm has also announced proposals to close its defined benefit pension scheme to further accruals later this year, as well as plans to open offices in Singapore and Dubai later this year, with both offices to focus on international arbitration.
Managing partner Paul Devitt said: "We need to make changes and improvements to take best advantage of the new environment we now operate in – one of opportunity and increased business and yet one where there is a need for greater efficiency and to deliver differently and better for our clients.
"Even allowing for current economic and market pressures, the returns we generated from the business last year were disappointing and we have a very clear strategy and vision to drive better performance this year and in future years.
He added: "We need to reduce our costs, but the focus is not simply about cost-cutting. Our business remains in a strong position and we continue to plan and invest appropriately for the future. We are confident that the full range of measures being proposed, and decisions taken around the tactics, focus and implementation of our strategy will enhance the long-term strength and competitiveness of our business."
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