Shepherd and Wedderburn to lay off staff and cut partner pay by 10%

Shepherd and Wedderburn has launched a redundancy programme and implemented a number of cost-cutting measures as Scotland's leading firms continue to suffer as a result of the tough economic climate.

The staff potentially affected by the job cuts include a lawyer in each of the firm's construction and planning teams, and up to 12 full-time equivalent support staff.

The support cuts are being made as a result of a change in working practices that has been introduced in the firm's Edinburgh office.

Other measures the big four Scots firm has taken include a 10% pay cut for partners, 10 days unpaid leave for all staff during the current financial year and a salary freeze for the year to 1 October 2010.

The news follows a drop-off in fee income by 8% to £39.6m during the 2008-09 financial year.

Shepherds chief executive Patrick Andrews commented: "These measures have not been entered into lightly. Shepherd and Wedderburn has very deliberately sought to reposition itself in the market to better assist its clients in meeting the challenges which they face, and we share, and to take advantage of the opportunities that are being unlocked in the legal market."

He added: "I am confident that the measures we have announced today will allow the firm to invest in growth areas and take advantage of market opportunities, both as the economy begins to recover and beyond."

Other Scottish firms to have recently announced cutbacks include McGrigors, which overhauled its partnership and remuneration structure, resulting in 10 partners being de-equitised at the end of last year, while Dundas & Wilson carried out a redundancy programme affecting 25 fee earners, including a number of equity partners.