British law firm Simmons & Simmons has cut down on its lawyer and support staff numbers in its Abu Dhabi and Dubai offices, as it refocuses its strategy on key business areas amid difficult market conditions in the Middle East.
The job cuts will not impact the firm’s partners in the UAE, and will largely be relegated to its real estate practice and financial practice, which have been struggling after the real estate market crashed and deal flow dried up in the region following the global financial crisis, two sources from the firm said. Two associates in Dubai have been let go of, and one has been given the option to relocate, said a source familiar with the matter, adding that the decision out of London came as a surprise. Ten support staff were also made redundant.
Another source confirmed that two associates in Abu Dhabi have also been affected, as well as a number of support staff.
Simmons & Simmons declined to comment on how many people have been impacted by the move. However, a spokeswoman confirmed in a statement that a “small number of lawyers and business services staff have been affected in Dubai and Abu Dhabi.”
“Due to ongoing market conditions in the Middle East, we, in common with a number of other international law firms, have reviewed the needs of our clients and our business in the region. We have offered affected people roles in other offices where feasible, and where not, we will support them in finding new roles,” the spokeswoman said.
Simmons & Simmons is likely to turn its focus on key areas of growth, such as its construction practice out of Abu Dhabi, and the corporate and telecom practices in Dubai, said Shane Morton, partner at legal recruiting consultancy Taylor Root. “It is a strategic review of how best to serve the Middle East by pinpointing where they see further growth. They are streamlining themselves, and are getting rid of some of the excesses of olden days.”
Morton said many law firms in the past few years have refocused their business to core markets after the global financial crisis. “It is what happens in maturing markets. While some firms decide to remain full-service, some firms will try and do what they do well. Firms always have to assess where resources should be redeployed.”
Simmons said its Doha office and affiliated office in Saudi Arabia have not been affected by the review.
The firm has, in recent months, suffered a setback in its real estate practice with the departure of David Nunn, who joined Berwin Leighton Paisner (BLP) as real estate head for the Middle East and North Africa (MENA region). His move was followed by Dubai-based partner Duane Keighran, who also left the firm to join Jones Day. Keighran was promoted to the real estate head position after Nunn exited the firm.
The move has made some in the industry wary of wider changes to come in the legal market. “There are too many lawyers in Dubai,” said one of the sources. “This was a reflection of market conditions, and it is inevitable that other firms may want to do this.” ALB
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