We have just learnt that beleaguered firm Shoosmiths has asked all its staff to accept a 2.5% pay cut.

Insiders say that whilst this has been presented as optional, the firm has also threatened further redundancies if the offer isn’t taken up. In addition some departments, Corporate and Real Estate in particular, are still making staff redundant and are asking others to work four day weeks or nine day fortnights.

Shoosmiths has been down on its uppers for a while. Two years ago it was forced to ‘fess up to clawing back law school bursaries. Last autumn it announced cutbacks that saved the firm an impressive 23 pence per member of staff per week. This year it deferred the start of its training contracts for up to two years with no compensation at all - and the resulting shameless fawning by a couple of the trainees who sent a crawling letter to The Lawyer defending the decision backfired spectacularly. The firm’s Chief Executive subsequently stood down.

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