BigLaw Firms Still Struggle for Balance
Although the legal economy has been looking up in recent weeks, revenue at Allen & Overy dropped by seven percent during the six-month period that ended Oct. 31, the London-based “magic circle” law firm has announced.
It is not planning any further layoffs to follow A&O’s earlier elimination of 450 positions, including 47 partners. But a salary freeze for all staff will remain in place until May, reports the London Times.
Meanwhile, megafirm Clifford Chance plans to cut another eight attorneys from its capital markets practice group at its London headquarters after the elimination earlier this year of 200 jobs and an unknown number of partners. No additional attorney layoffs are planned after the eight attorneys in the current “redundancy consultation” are dealt with.
These moves by the elite London-based flagship firms suggest that the legal sector is still fine-tuning the sudden adjustments in law practice that were required by the global financial downturn last year, according to the newspaper.
While transactional work is still flat, there has been a recent pickup in the firm’s bankruptcy and litigation work, Wim Dejonghe, who serves as managing partner of A&O, tells the Times.
Related earlier coverage:
ABAJournal.com: “Partner Profits Plummet 37% at Clifford Chance; Skadden Now #1 Firm By Revenue”
ABAJournal.com: “Up to 92 Clifford Chance Partners to be Axed … But Which Ones?”
ABAJournal.com: “It’s Official: A&O Axes 450 Today”
