Corporate lawyers search for a deal in the arid M&A landscape
CMS is making redundancies in its UK corporate practice.
The firm is axing 19 lawyers, a source told RollOnFriday. It is understood that the firm has over 250 corporate lawyers in the UK, with the majority based in London. The cuts may reflect the slowdown in global deals this year.
“A partner told us how hard it was for him to give the news...we all feel very sorry for him I’m sure," said the insider. "No effort to make team pay cuts and no effort to offer flexibility for part time work or unpaid career breaks”.
"We’ve all been told not to talk to the press or leak the information to ‘protect our colleagues’ feelings’ when we all know all the firm actually cares about is its own reputation,” the source told ROF.
They added that the firm was “cutting the London office whilst bolstering lawyers in Sheffield/Manchester.” And that the firm has also “reported to us that they are on target profit wise…so at least the partners get their pay.
In August, the firm announced global revenues for the financial year January-December 2022 of 1.862 billion euros, an annual growth of 6.2%.
Another insider said affected staff were informed last week that a major redundancy round was underway. “From the looks of it, it’s very much a ‘last in, first out’ approach," opined the source. "Obviously the people directly affected are gutted but it’s also pretty shocking for the rest of us - they wouldn’t give any guarantees about whether more cuts would be required.”
CMS raised NQ base salary from £100,000 to £105,000 in July. The firm scored a trainee retention rate of 78% this autumn, as it kept on 47 out of its 60 qualifying trainees, following a 68% retention rate in the spring (when 19 out of 28 were kept on).
A CMS spokesperson declined to comment on the redundancy consultation.
In other non-cheery news, Taylor Rose is also cutting jobs. A spokesperson for the firm told RollOnFriday: “In common with many businesses in the current environment, rising costs and changing working patterns following the pandemic have resulted in the need for us to carefully manage our costs, and are therefore reviewing a small number of areas of our business that are inefficient or not financially performing."
The spokesperson confirmed that a consultation is "well underway", adding that the firm is "doing everything we can to support employees through this process, while evaluating alternative solutions and ways of redeploying employees at other locations, as well as potential redundancies."
It is not known which roles will be impacted at Taylor Rose, as the consultation is ongoing. However, RollOnFriday understands that the current consultation will only affect a small proportion of staff.