DLA makes new round of layoffs in Middle East as market slumps

DLA Piper has made a new round of job cuts in the Middle East, with the firm set to make another 9% of staff in the region redundant in response to the continued deterioration in the markets.

The latest round of cuts, which follow a review of the business, equate to seven lawyers and 10 support staff losing their jobs with effect from Monday (7 December). The firm did not provide a breakdown of the job losses but said the majority of the layoffs were in Dubai and affected the construction, real estate, project finance and development projects teams.

As a result of the review the firm will also transfer 14 members of staff, including a number of partners, from the Middle East region to other offices, including London, during 2009 and 2010. In addition, the firm said 11 staff have recently resigned from the Middle East offices. Taking the latest departures and two redundancy rounds held earlier this year into account, headcount has shrunk by 39% year-on-year.

DLA Piper regional managing partner Abdul Aziz Al-Yaqout said: "The impact of redundancies on our people is deeply regretted and we are assisting them to manage the transition, whether remaining in the region or returning to their home locations. Where possible, we have assisted our people in securing alternative employment."

In June, DLA Piper laid off 22 staff, including nine fee earners - one of which was a partner. Dubai was the most heavily hit, taking one-third of the cuts.

That had followed a Dubai redundancy round in April, which saw eight associates laid off. In addition the firm placed a number of lawyers on secondments as a cost-saving measure to stave off further redundancies.

Legal Week previously reported that the staffing issues in Dubai earlier this year came amid claims that the firm had been in discussions with Dubai World-owned construction giant Nakheel regarding alleged late payment of a significant sum in fees. However, it is understood that the outstanding fees were paid to DLA during the summer of 2009.

DLA Piper has offices in Abu Dhabi, Doha and Muscat in addition to Dubai, as well as associations in Saudi Arabia and Kuwait.

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