Addleshaw makes 31 back office job cuts as Leeds private equity partner exits firm
Addleshaw Goddard has finalised a redundancy round in its business services function which has resulted in 31 job cuts. The layoffs, effective at the end of June, came after a 30-day consultation the firm announced in May this year which saw 40 support roles placed under review. No fee earners were affected by the cuts.
July 25, 2011 at 07:57 AM
2 minute read
Addleshaw Goddard has finalised a redundancy round in its business services function which has resulted in 31 job cuts.
The layoffs, effective at the end of June, came after a 30-day consultation the firm announced in May this year which saw 40 support roles placed under review. No fee earners were affected by the cuts.
A further 12 members of business services staff have also departed on a voluntary basis since the start of the year, although the firm said this was down to natural attrition and that it had offered no additional incentive.
Confirmation of the layoffs comes as Leeds-based private equity partner Simon Pilling prepares to exit the firm later this summer. Pilling is set to pursue a new career outside of the law with his longstanding client John Laithwaite, the founder of JLA, the UK's largest commercial laundry equipment supplier.
An Addleshaws spokesman said: "After more than 20 years in the law, it represents a complete change of direction for Simon and it is the opportunity to do something different, together with the nature of the role, that has persuaded him to leave. We remain committed to continuing to expand the team in Leeds."
Addleshaws recently posted a 23% drop in average profits per equity partner (PEP) to £328,000 for 2010-11, with turnover down by 3% to £162m.
The firm is also in the process of making a number of structural changes, including the spin-off of most of its non-partner services and costs into a newly-created service company – 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.
Addleshaws has also recently moved to overhaul its management structure by merging together its governance board and executive leadership team into a single board, while also announcing proposals to close its defined benefit pension scheme to further accruals later this year.
- For more, see Legacies lost – can Addleshaws regain that old polish?
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