Top 50 UK Firm Looks to Cut Up To 80 Jobs
The move was attributed to the COVID-19 pandemic which has resulted in 'over-capacity' across its 13 offices.
July 20, 2020 at 04:57 AM
3 minute read
U.K. Top 50 law firm Freeths has launched a consultation that could result in the loss of around 80 roles as a result of the coronavirus pandemic.
The firm said in a statement on Monday that the proposed job cuts will be split "more or less evenly" between lawyers and support staff and will affect people across the firm's 13 U.K. offices.
Freeths has about 155 partners, who are not affected by the consultation, and about 800 lawyers and staff, meaning about 10% will be affected by the process, which will end in early September.
The firm said that its growth over the past five years had contributed to it reaching its target of hitting £100 million in the 2019-20 financial year. However, the COVID-19 pandemic has meant that the firm's ramped-up recruitment process prior to the virus has "inevitably resulted in over-capacity".
Freeths chairman Colin Flanagan said in a statement: "I am greatly saddened and disappointed that, as a result of external circumstances beyond our control, we are going to lose some of our excellent team members.
"It is a matter of huge regret that we are faced with some contraction in our work for the first time since the financial crisis, and that we find ourselves needing to reduce our staff numbers. I am, however, confident that this action is in the interests of the business and our clients and will allow us to move forward with renewed confidence for a successful future."
Staff were informed of the decision via an email from Flanagan. The firm added that all potentially affected staff members will be involved in video conference meetings with the firm's staff council, where they will explore other options such as paid sabbaticals and reduced hours in hopes of reducing the number of redundancies.
Earlier in the COVID-19 crisis, the firm suspended partner distributions and reduced monthly drawings, while staff members agreed to a temporary salary reduction until August and board members took a 30% pay cut.
Freeths was identified as one of the U.K. firms with the highest debt and the least cash in Law.com International research in May.
Freeths is the latest firm to announce layoffs in London, following others such as Bryan Cave Leighton Paisner, Watson Farley & Williams and U.S. firm Dorsey & Whitney who have also cited COVID-19 as a reason for trimming their workforce.
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