Last week we reported that Allen & Overy, the UK’s fourth-biggest law firm by revenue, would cut as many as 150 lawyers, sever ties with its private client team, and freeze pay.
Now Legal Brief Today reports that Allen & Overy will cut 450 jobs at a cost of £44 million ($64 million).
The ‘magic circle’ firm told staff it would reduce the headcount by 9% by the end of its financial year on 30 April. That means 47 partners and almost 200 rank-and-file fee-earners will lose their jobs, roughly half of them in London, with a similar number of support staff going, says a report in The Times. It adds that a further 35 partners will be forced to accept a reduced share of equity. Remaining partners will be asked to inject an average of £30 000 to raise the firm’s working capital by £11m.
Via LBT.
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