Slater & Gordon, the world’s first publicly traded law, firm may be in some trouble. For the past year or so, news has flooded the market about the firm’s $700 million loss thanks to its controversial acquisition of the legal services branch of UK-based insurance claims processor Quindell (now known as Watchstone Group). Slater & Gordon now plans to sue Watchstone Group, which was placed under investigation by the UK’s Serious Fraud Office shortly after the acquisition deal closed, but that’s not the biggest news of the day concerning the beleaguered firm.
Today, Slater & Gordon released its annual report, which contained some shocking news. Legal Week has more information on the firm’s latest difficulties:
The firm, headed by managing director Andrew Grech, released its annual report earlier today, with the report stating that the firm now has 3,310 employees across 25 locations in the UK. This time last year, the equivalent figure stood at 3,950 people at 28 locations across the UK.
A spokeswoman for the firm said: “Some of the reduced numbers are down to Slater and Gordon streamlining the firm and reducing duplicated roles in the business. However, we are hiring in areas such as family law, general law and others.”
Litera One, Gen AI, And The Future Of Legal Tech
Litera CEO Avaneesh Marwaha weighs in on the company’s new solutions and how they’re changing the Biglaw workflow at Legalweek.
That’s 640 jobs lost over the course of a year, or about 53 jobs per month, which equates to 16 percent of the firm’s workforce in the UK. Slater & Gordon Chair John Skippen had this to say: “Slater and Gordon’s results for the financial year ended 30 June 2016 were disappointing and well below expectations. As announced in February 2016, a range of performance improvement initiatives were put in place in the second half of the year to improve profitability and cash performance across the business.”
As we all know, one of the the most popular ways to improve profitability and cash performance is through layoffs, and it looks like the powers that be at Slater & Gordon were working overtime to enhance the firm’s cash flow considering the high number of jobs that were eliminated.
We wish all of the lawyers and affected individuals at Slater & Gordon the best of luck while they seek new job opportunities in the legal industry and beyond.
If your firm or organization is closing its doors or reducing the ranks of its lawyers or staff, whether through open layoffs, stealth layoffs, or voluntary buyouts, please don’t hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive — we’ll never ignore you. You can email us or text us (646-820-8477). Thank you!
Best Practices In Trust Accounting: What Every Lawyer Needs To Know
Learn legal trust accounting best practices to ensure compliance and protect client funds. Discover expert tips to set your firm up for success.
Slater and Gordon report shows 16% drop in UK headcount [Legal Week]
Earlier: A $700 Million Loss Puts A Law Firm On The Ropes
Staci Zaretsky is an editor at Above the Law. Feel free to email her with any tips, questions, or comments. Follow her on Twitter or connect with her on LinkedIn.