According to the recent Australian Financial Review Partnership Survey, law firm partnerships are contracting across the country as major players like Norton Rose Fulbright, Ashurst and Allens have each shed far more partners in the past year than they have promoted or hired. NRF had the highest rate of partner attrition according to the survey, having lost 22 partners but gained only 12 to replace them. High-end operator Ashurst has lost 20 partners in the past year and replenished the partnership with only nine: ‘Firms like Ashurst which operate at the premium end of the market are not immune to the various pressures our clients are facing,’ commented Ashurst Australia boss Phil Breden.

Good news or bad?

Though Allens’ partner headcount reduced by eight over the last 12 months, managing partner Richard Spurio said that the smaller headcount was a testament to innovation, rather than a sign of tough times. ‘In our case it reflects changes in the way we provide our services – more technology, more innovation, different workforce options all impact on how we work with clients and our overall size,’ he told the AFR.

Source: Australasian Lawyer; Australian Financial Review