By Maura Bowman

TAYSIDE’S LARGEST legal firm, Thorntons Solicitors, has become the latest victim of the credit crunch with the announcement that it is to axe up to 50 full-time posts.

The firm, which has 32 partners and employs more than 350 people at offices in Dundee, Perth, Arbroath, Forfar and Edinburgh, has not ruled out compulsory redundancies.

It follows an in-house review of the business, prompted by the economic climate and challenging market conditions.

That review, conducted by a team of partners, has concluded that between 40 and 50 full-time equivalent jobs have to go across the firm to ensure the future viability of the business.

Managing partner Nick Barclay said, “During the past six months, in common with most businesses, we have encountered unprecedented market conditions which have led to us facing significant challenges.

“We have endeavoured to keep staff fully advised on the situation and have adopted a very cautious and prudent approach to the management of our business, including freezing recruitment, reduction in overtime and staff voluntarily reducing hours, while strict cost controls and financial protocols have been put in place.

“However, following the review which commenced in October and with business at its current level, it will very regrettably become necessary for us to make redundancies to ensure the future success of the firm.

“This is very much a last resort and we thank our staff for their tremendous support throughout these difficult times.

“We have asked for volunteers to reduce working hours or take career breaks and will also initially be seeking volunteers for redundancy.”

Thorntons will start a formal redundancy process by setting up an elected group of employee representatives for the purpose of consultation, which is likely to last until mid-February.

The firm added that there would also be full, individual consultation with any employees at risk of redundancy.

The job cuts come after a period of rapid growth for the firm, with the business more than doubling in size since 2000.

That success led the firm to move its main Dundee office from Castle Street to the purpose-built and considerably more extensive Whitehall House in Yeaman Shore two years ago.

Six months ago Thorntons managers said that they would be able to weather the credit crunch storm, despite the effect on the property market and mortgage lending.

That has proved unfeasible and the firm has been forced to follow in the footsteps of another local legal firm, Blackadders, which in the summer announced between 40 and 60 redundancies—around a quarter of its workforce.