Pogust Goodhead has confirmed it will conduct a redundancy consultation, in what the class action specialist described as an “incredibly difficult” decision. 

A spokesperson for the firm confirmed that the cuts will affect both legal and business services staff. 

The firm did not respond to requests for comment as to how many jobs would be affected, although the Law Society Gazette reported that between 40 and 50 jobs were likely to be cut in its London headquarters, with a similar number to be let go in Brazil. 

The six-year-old firm, which has made a name for itself through large group diesel claims against car manufacturers and the £36bn class action against mining giant BHP over the 2015 Mariana dam disaster in Brazil, said that it will run a formal consultation with staff over the coming weeks. 

A spokesperson for Pogust Goodhead commented: “We were established with the ambitious goal of providing justice for millions of people who have been wronged by multinational companies. It is well known these companies have infinite resources. While it is an incredibly difficult decision, it is only right that as we move forward, we position our firm strongly to provide access to justice for clients, both, existing and those in the future. 

“We will be running a formal consultation with staff through a staff representative group over the coming weeks before finalising how many people will be affected.”

Pogust Goodhead has more than 100 lawyers and more than 500 staff across offices in the UK, the US, the Netherlands, Australia and Brazil according to its website. 

The firm made headlines late last year when it unveiled a £450m investment from Gramercy Funds Management, a US-based emerging markets investment manager, in what it hailed at the time as the largest litigation funding deal in legal history.

In February Pogust Goodhead also announced plans for a “synthetic equity programme” that would see its junior lawyers earn up to £2m and its partners up to £20m from a £200m bonus pool that would run over the three-year deal struck with Gramercy, Scottish Legal News reported. 

The firm is structured as a UK private limited company and its latest annual accounts, made up to 29 December 2022, are eight months overdue, according to Companies House.

A survey published by Portland Communications earlier this week found that 77% of business leaders believe directors have a duty to ensure a company’s climate risks are properly managed while 72% believe litigation that alleges human rights violations in supply chains is justified.