The effects of the downturn on the legal profession have snowballed in the last few of months. It all started with widespread rumours of associates being ‘managed’ out of firms during the course of the last year or so but this was eventually followed up with formal redundancy consultations across the board. More recently Addleshaws opened the door on partners being forced to walk the plank bringing in the prospect of serious restructuring such as Linklater’s New World strategy. Finally Freshfields opened up the gates on associates salary freezes. The areas left for a bit of cost cutting are incresingly more sensitive.

It has not yet come to light that any training contracts have been cancelled but rumours have been knocking around for some time that firms have been offering deferrals. We received a request for advice from one such future trainee who had been offered a deferral back in early January and more recently DLA and Lovells have asked that future trainees defer for a year.

Another area of cost cutting that has just been dipped into by Charles Russell is the reduction of vacation schemes. The firm has announced plans to cut its two-week summer vacation schemes in half in a bid to control costs. This comes shortly after news that Field Fisher Waterhouse cancelled its vacation scheme for 2009 as it completes a review of its graduate recruitment system.

You don’t have to be a Poirot to notice the trends here – once one firm decides it has no option (is desparate) but to cut costs in a particular area they take the plunge and soak up the headlines. Shortly afterwards other firms follow suit, the initial sting of such announcements having been conspicuously absorbed by the first mover. We don’t like to be the doom mongerers here but if these latest announcements are anything to go by they seem to spell bad news for vac schemers…