A statement from Reed Smith was quick to downplay the scale of the layoffs, pointing out that the cutbacks amount to only 2.5 per cent of the firm's total global attorney team. However, that percentage climbs to four per cent when taken from the pool of the 1,205 lawyers in the firm's US, Europe and Middle East offices. The redundancies are sobering after the firm's 2014 hiring spree, when a 12 per cent surge in profits across Reed Smith's offices in London, Paris, Abu Dhabi and Dubai prompted a bulk-up in staffing across the Middle East and Europe. According to Reed Smith's statement, those attorneys let go by the firm will be offered severance packages and job transition advice and support.
Strategic restructure
Reed Smith has emphasised that the decision to let go of members of its team is regretful, acknowledging that the cuts will affect 'individuals who have made meaningful and positive contributions to our firm and our clients.' However, the firm has indicated that a wider strategic restructure at the firm, which is designed to bring Reed Smith's service offerings and delivery in line with the evolving demands of a changing legal services market, is the principal motivation behind the decision to cut lawyers loose. 'Like all profitable businesses, Reed Smith must be attentive to market demand and industry changes and make necessary adjustments to remain competitive,' read the firm's statement. An Above the Law inside source has reported that of the 45 lawyers affected by the cuts, 40 are counsel or partners while five are associates. This division has not yet been confirmed by Reed Smith. Sources: Legal Business; Above the Law
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