Law firm set to cut up to 80 jobs
Law firm Freeths, which has offices in Birmingham and Stoke, today (20 July) announced a redundancy consultation that could see up to 80 jobs go across its 13 offices.
The firm says the job losses will be split “more or less evenly” between lawyers and support staff.
Freeths says although it has seen growth over the last five years and achieved its target of £100m turnover in the 2019/20 financial year, this has “necessitated recruitment ahead of need in order to deal with anticipated work demands”.
The coronavirus pandemic and downturn has resulted in over-capacity, the firm said.
A statement from the firm said: “In the light of a cautious analysis of the prospects for economic recovery, the Board has reluctantly come to the conclusion that a significant realignment of resources is necessary.
Colin Flanagan, chairman of Freeths, said: “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. We have worked hard to build an exciting law firm with real momentum and one which truly values its people. 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.”
The announcement was made by Colin Flanagan in an email to staff, and will be followed immediately by video conference meetings with the Staff Council and with all potentially affected staff members. These meetings will set out a number of alternative proposals, such as paid sabbaticals and reduced hours, which the firm hopes will reduce the number of redundancies implemented.
This move from previous measures taken by the firm in response to the current situation, including suspension of partner distributions and reduction in monthly drawings, with Board members taking a 30% cut. Staff members also agreed to a temporary salary reduction which runs until August.
The firm says it has been holding Staff Council meetings on a bi-weekly basis throughout the coronavirus crisis, and the Council has been provided with regular updates about the progress of the business including detailed financial information. Council minutes are then circulated to all staff members.
