DWF-Acquired Spanish Firm Cuts 15 People, Terminates Trainee Programme
At least one partner is among those to leave, according to people familiar with the situation.
April 08, 2020 at 07:43 AM
2 minute read
Rousaud Costas Duran, the Spanish firm acquired by U.K. listed firm DWF at the end of 2019, has cut employees and terminated its trainee programme, according to two people with knowledge of the matter.
Known as DWF-RCD since the takeover took place in December, the firm has dismissed around 15 employees in recent weeks, according to two people with knowledge of the situation. One person affected by the decision said it is related to the impact on the business of COVID-19, but a person at the firm said no current business decision is related to the crisis.
At least one of the dismissed is a partner, and the firm has also terminated its trainee programme, the two people said.
A former DWF-RCD lawyer added that since the takeover, the Spanish outfit has remained "fairly autonomous" of DWF and that while RCD is 100% owned by the U.K. listed firm, management and the rest of the firm are yet to be "fully integrated". The person added that the cuts appear to be very much a "local matter".
London-listed DWF acquired RCD for €50 million, adding Madrid, Barcelona and Valencia offices to its network.
Several law firms have taken preparatory measures in an attempt to shore up their businesses in an uncertain climate caused by the coronavirus pandemic.
Freshfields Bruckhaus Deringer confirmed on Monday it has suspended profit distributions, while at the end of March A&O asked partners to contribute capital to the business and is gradually reducing its partner profit distributions.
Cadwalader Wickersham & Taft, Reed Smith and Norton Rose Fulbright have all said they will be taking steps including lowering or deferring partner pay outs. Meanwhile Dentons is considering whether to cut partner and fee-earner pay across Europe.
|Read More:
Five Financing Options for Law Firms in Challenging Times
Pay Cuts, Layoffs, and More: How Law Firms Are Managing the Pandemic
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