Addleshaws to cut staff as fee income rises

 
Elizabeth Fournier
LAW firm Addleshaw Goddard said yesterday it had begun a restructuring process that could see it lose up to 24 of its fee earners, as it reported a 37 per cent rise in profits per partner (PEP).

Overall profits at the firm rose by 30 per cent, from £34.4m to £44.9m, while PEP – a key indicator of law firm profitability – increased from £328,000 to £450,000.

Addleshaw’s litigation practice brought in the biggest share of income, earning £37.4m for the firm, closely followed by its finance and projects and real estate work.

The corporate and commercial services divisions lagged behind slightly, earning £29.2m and £23.4m respectively.

The firm said the cuts to headcount would impact “across each UK office and all five divisions.

“There are continuing significant market pressures and whilst our business is in a strong position, we are determined not to be complacent,” said managing partner Paul Devitt.