Allen & Overy has confirmed that it's at it again: asking a number of partners to find jobs elsewhere. And Freshfields is thought to be doing the same too.

RoF first broke the news some weeks ago, and A&O has now confirmed that between 1% and 3% of its partners will be leaving. It said that this was simply part of good business management, and it's certainly not as bad as the full scale restructuring programme in 2009 in which 47 partners were asked to leave.

Still, it's bad news for around 12 partners. And it's not the only firm either: Herbert Smith is kicking out around a dozen corporate partners, Freshfields is believed to be doing the same to a couple of real estate partners and managing partners at several City firms have told RoF that they're taking a much more aggressive approach to managing the equity.

    Some partners yesterday
 
London revenues are generally pretty flat, and so the only way that firms can promote talented associates in the UK is by clearing some room at the top. But that task that has been made more difficult by age discrimination legislation, as partners can't be automatically asked to leave at 55, as many were in the past, And the recession hasn't helped either as many partners have clung on for an extra couple of years to make up for falling pensions and rising tax bills.

Expect to see more partners' CVs floating round the City in 2012.
 
Tip Off ROF

Comments

Anonymous 02 December 11 11:20

Not sure this article is accurate re A&O. The Lawyer ran an article earlier this week (http://www.thelawyer.com/1010406.article) in which Wim flatly denies that any partners will be fired. Instead, the equity will be "pruned" by between 1 - 3% per year. Those figures are the same as percentages of partners RoF claims will be leaving. Seems like someone is mixing up their facts.

LauraP 02 December 11 11:41

Don't think Wim denied that partners are being asked to leave. "Pruning the equity" is the same as being kicked out. It's just semantics. You say tomato....

Anonymous 02 December 11 13:33

Alternatively, I think Wim might have a little chat and suggest you'll start sliding off the back of the equity ladder...