Scots finance lawyers face tough times
Some Scottish law firms have seen a fall in demand for their services around the finance space, and have trimmed headcount as a result. And 2009 looks like being an even tougher year for the sector.
DLA Piper is cutting four members of its team in Glasgow, as part of a UK-wide plan for 40 redundancies, and Edinburgh-based Dickson Minto is also planning to reduce its headcount.
Bruce Westbrook, managing partner for DLA Piper in Scotland, said: "There has been a reduction in the demand for services in the UK real estate and finance-related groups, and as a result we are in consultation with some of our people within those teams about possible redundancies."
The picture across Europe is beginning to look pretty grim for finance-focused law firms, with Clifford Chance, Eversheds, Shearman & Stearling, Reed Smith and Orrick trimming their teams last week, and Mishcons, Dechert and Beachcroft rumoured to be making redundancies.
It might be small beer in comparison to the number of jobs lost in banking and financial services, but The Lawyer reckons 1,235 jobs are currently under threat in the UK's 200 largest law firms, though the majority of these are within real estate.
But next year is likely to be rough for financial law firms, according to a CBI forecast, which predicts "significant" job cuts in the next few months.
The Law Society of Scotland recently conducted a survey to gauge the number of redundancies among firms north of the border.
Henry Robson, deputy chief executive of the Law Society of Scotland, said: "From the approximate 200 responses, it was revealed that a total of 304 staff have been made redundant. The majority of redundancies were of support staff and 10% of solicitors/partners.
"While there is an indication that there will be further redundancies, the prediction is that redundancies will be less than half the current figure. The number of solicitors/partners predicted to lose their jobs may rise to 25% of the total redundancies."
In response the growing number of job cuts, the Law Society has recently prepared guidance for lawyers with advice on negotiating redundancy packages, continuing professional development, finances, job applications and interview tips.
This might seem odd, considering the fact that most lawyers should be in a good position to represent themselves, but they often not best placed to know their rights in spite of their professional qualifications, says Sam Mangwana, an employment solicitor at Russell Jones & Walker.
"Their careers are threatened, their self-confidence dented and unemployment looms," she says. "And senior management is ranged against them, dispensing justice like a kangaroo court. It can be intimidating."
