Olswang has downsized its Spanish offering, it has emerged, just weeks after news broke that the firm's entire Berlin office is departing.

The UK outfit is set to move into new premises in the Spanish capital in the coming weeks, with local partners suggesting that the firm is taking on less space than in its current Paseo de la Castellana base.

The move comes after a significant decrease in headcount since its peak in its immediate post-launch years, with lawyer numbers falling from a 2011 high of 30 to five currently, including just one partner. The most recent exits include tax head and legal director Alvaro de la Via, who left last month, and corporate partner Eduardo Coca in March, both of whom now run their own boutiques.

They follow the exit of the office's second managing partner in five years, Pablo Morales, who joined in October 2014 before leaving just months later.

Coming alongside Olswang's troubles in Germany – where the firm is refocusing around its TMT-centred Munich office following the departure of 50 Berlin-based lawyers to launch an office for Greenberg Traurig Maher – questions have now been raised over what this means for Olswang's broader international strategy.

Having launched in Madrid in 2010 with the intention of operating a full-service office, the outpost is now a boutique offering focusing on the firm's core TMT strengths. At the time of the launch then chief executive David Stewart said the opening was "an important step in our plan to build a full-service European network".

Former partners have questioned the reasons for entering the market in Spain during the crippling economic downturn in the country. "There was always an underlying debate as to what extent it was sensible," says one ex-partner. "I remember sitting in meetings where partners would ask 'why are we doing this?' But there was an international strategy masterminded by David Stewart and people got behind it."

In addition to its Madrid and Munich offices, Olswang also has a presence in Singapore, Brussels and Paris. Sources close to the firm say that after the loss of Berlin and the downsizing in Madrid, Olswang is in a process of "renewal" and prioritising its TMT and intellectual property core.

"In terms of Munich and Madrid and what has happened in Berlin, the retrenchment to TMT may be an important factor in Paris and Singapore," comments one former partner.

Olswang maintains that it has for many years had a strategy of being a "leading international TMT law firm focused on both Europe and Asia", adding that its corporate practices are not under review.

Paris managing partner Guillaume Kessler says the office is "still in acquisition mode as we look to build out capability in some areas that Olswang is known for". Singapore managing partner Rob Bratby explains that his office has always been heavily TMT-focused because of the growth in the sector in the region. However, he adds that it is looking to "strengthen and deepen its offering in corporate and disputes".

In Brussels, the firm's first international base, which has been open since 1999, local managing partner and Olswang chair Dirk Van Liedekerke says: "Since its establishment, the office has always been aligned perfectly with the firm's strategy of focusing internationally on TMT clients… The firm strategy of being a leading international TMT firm has not changed and enjoys the full support of the partnership."

One former partner though highlights the shift in strategy: "Stewart was keen to foster the one-stop shop. I'm not so sure that this will be the case with [current managing partner] Paul Stevens. I could already tell the power shift was going back to TMT after the appointment of an IT litigator [Michael Burdon] as temporary head."