Hogan Lovells is making 43 business staff in the US and Mexico redundant, as a result of the impact of Covid. 

The affected staff make up about 4% of the total business services team in the Americas. The firm is also commencing voluntary redundancies in the UK for business services staff and secretaries, which it expects to complete by November.

A Hogan Lovells spokeswoman confirmed there were no fixed numbers for the voluntary redundancies in the UK, and the firm had "no plans for compulsory redundancies in the UK or further reductions in the US in 2020." 

“We appreciate that these are difficult times and these reductions are in no way a reflection on the skills and qualities of the people involved," said CEO Miguel Zaldivar. "These are not easy decisions to take – those who are leaving us are our friends as well as our colleagues and they leave us with our thanks and support.”

He added that while the firm had "performed well over the past few months" there were "continuing uncertainties in the market for 2021" and the firm needs "to be well-positioned to weather what could be a more challenging period.” 

Like many other firms, it's a bit of a rollercoaster of ups and downs for staff due to the pandemic. In May, as firms reacted to the impact of Covid-19, Hogan Lovells deferred salary reviews and discretionary bonuses for UK and Asia Pacific associates and business services staff. The following month, the firm reduced salaries for associates in the US, Mexico and Brazil by 10%. But in September, in a welcomed U-turn, the firm announced that it would reverse the pay cuts for lawyers.

HogLove has now carried out its delayed salary and discretionary bonus review for lawyers, and will make the compensation adjustments this month, which are backdated to May 2020.

There's also good news for HogLove's junior lawyers. Over the summer, the firm reduced NQ pay from £90,000 to £85,000 (in London) and from £48,000 to £46,000 (in Birmingham). But it has now reinstated the NQ salaries back to pre-Covid levels. And second year trainees in London who had their salaries frozen at first year levels (£46,000) will now have their salaries increased to £51,000, and backdated to August when the seat move occurred.

A spokeswoman for the firm confirmed that “a salary and bonus review for Business Services will follow in November.”

So it's a bit of a mixed bag for law firms. There are positive signs that lawyers in the big City firms won't be hit in the pocket this year, with temporary salary restrictions eased. And some of the US firms, such as White & Case and Akin Gump, are going great guns by increasing lawyers' wages and paying out special bonuses. But it remains to be seen how business services staff and secretaries at the big City firms will fare with job security and remuneration, as some cuts are creeping in

Tip Off ROF


Crycry 30 October 20 08:48

HogLov. Once nipping at the heals of the magic circle. Now trying to win work from Eversheds. Sad really. 

FBD Associate 30 October 20 09:06

Just business I’m afraid.  Gotta cut loose anyone not being utilised fully.

Anonymous 30 October 20 09:28

FBD Associate 30 October 20 09:06

Just business I’m afraid.  Gotta cut loose anyone not being utilised fully.

First they came for the secretaries and sniggered because I was not a secretary.

Then they came for the Godfather wannabes, and everyone else pissed their pants laughing because they thought I was an asshole.

Excluse If Con Tent 30 October 20 09:56

If only ROF knew half of what’s going on at SPB London these days. Wielding the axe so wildly even partners are getting chopped left right and centre

the office must’ve shed some 30 people over the past 6 months

Anon 30 October 20 10:08

What happened to my earlier Guacomole Mexican themed puns? Come on RoF, you're tacoing the mick.

Anonymous 30 October 20 13:35

Hogan Lovells' open-plan Birmingham office was the clearest indicator of a trip to mid-marketsville, ackshalloy.

Anon 30 October 20 14:26

HL, can you give me a quote to sue my builder. He did a terrible job on my extension. My mate recommended you, said you can do me a good deal from your Hull office. 

Anonymous 30 October 20 15:00

HogLove lost a dearly-loved real estate partner recently from London. He's gone to shake up the world of business analytics.

Anonymous 30 October 20 16:12

Any particular reason for the contempt for HL in these comments (other than the subject matter of this article)? Genuinely curious

HL 30 October 20 16:42

HL are like one of those Football teams that used to be one of the greats, up there with Man U and Liverpool. But now get related every other season. Leeds maybe, or Aston Villa

Tolstoy 30 October 20 18:10

Rumours have it an unnamed SPB partner was given the boot right in the middle of the afternoon last week and was dragged out of the London office screaming, farting and spitting 

Anonymous 30 October 20 20:51

HL are the Newcastle United of the legal world. Got some great players and dedicated fans but perenially mid-table.

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