PEP drops 8% at Reed Smith
Profits per partner at international firm Reed Smith dropped by 8% in 2015, in part due to the slump in global commodity prices, the firm revealed today.
Profit per equity partner in the year ending December 2015 was $1.1m (£0.77m), down 8.1% from the previous year’s $1.2m. Revenue dropped 2.5% during the same period, from $1.15bn to $1.12bn.
Reed Smith said that its revenues were hit by early resolutions of a number of significant litigation matters in 2015, as well as the impact of world events such as the slump in commodity prices.
It said: ‘We have a large sophisticated energy and natural resources practice, so when our energy clients have a tough year, we are affected as well.’
In 2015, the firm saw a 40% increase in its lateral partner hires from 2014. It said that it made 47 lateral hires in 2015 compared with 34 in 2014. Meanwhile at the start of this year the firm said it was cutting 45 lawyer roles across its offices in the US, Europe and the Middle East as part of a restructure to remain competitive.
Reed Smith said it expects 2016 will be a ‘year of growth’, and that it particularly expects a busy year for its intellectual property practice.