West End firm, Howard Kennedy, has begun its second redundancy consultation in the last 12 months with 40 jobs in the firing line. The cuts are understood to be targeted at the firm’s property and corporate practices. Salaried partners, fee earners and support staff are all involved in the process. Since its first consultation in June last year, the firm has completed two mergers with personal injury specialists Douglas-Mann & Co and London boutique DMA Legal but the on-going downturn has meant more cost cutting is required.

Herbert Smith has also announced a redundancy consultation in its London office. Up to 84 positions are under threat mainly in the real estate and corporate departments, of which approximately 30 will be fee earners. The firm has also announced that it will be freezing pay for all London staff except for trainees.

Field Fisher Waterhouse has joined a growing list of firms to reign in its graduate recruitment programme. Its entire September 2009 and September 2010 intakes are being pushed back for a year in return for a £5,000 cash payment. FFW confirmed that it is not planning to hire any new trainees for 2011 and that recruitment activities will be restarted next year for 2012. It is understood that the firm has also cancelled its summer vacation scheme programme.

Other firms have been looking at innovative ways of reducing staffing costs. US firm, Skadden Arps Slate Meagher & Flom, is asking its City lawyers to take a one-year sabbatical on one-third of their usual salary (approximately £84k). Those who take up the scheme are guaranteed a job once the year is past.