Freshfields culls partners in recent weeks, forcing out several equity partners across European offices including London as it reshapes pay to fund US expansion. The removals follow a strict performance-based compensation system introduced last year.
Christopher Clark, director at Definitum Search, said: "This move seems logical. It’s likely that the partners affected will still be paid very well, and now delivering a healthier profit margin for the firm."
Freshfields and the US push
The pay overhaul was designed to give Freshfields more room to expand in the US, where the firm now operates five offices. Freshfields made nine partners in London in 2025, bringing the total to 11 this year, and made three partners in the US over 2025, bringing that total to 13 this year.
Nick Woolf, partner at Woolf&Co, said: "The reality is that firms competing at the very top of the US market need greater flexibility to reward their highest-performing partners. Traditional lockstep systems can struggle to accommodate that. What we are seeing is the continued influence of US compensation practices on the leading UK and international firms".
Profit and partner pay
Freshfields reported a 6 per cent increase in global revenue to £2.3bn for the year to April 2025, but pre-tax profit fell two per cent to £656.8m. Its US revenue rose 21 per cent year over year to £473.3m from £391.1m.
That mix leaves Freshfields with more income overall, but less profit at the bottom line, even as the firm pushes more work and investment into the US. Its recent total profit share and remuneration among the core management group was £25.8m for 2025, down from £26.2m in 2024.
Freshfields in London
Which equity partners were forced out and how many were removed in total is not stated. Last September, Freshfields also started redundancies targeting paralegals at its Manchester office, showing the firm has already used staffing cuts and pay changes to support its wider cost base.
For affected partners, the immediate issue is not the label attached to the cut, but how the new pay system changes their place in the firm. Freshfields is using performance to decide who gets paid most, and it is doing so while spending into the US market.
