Clifford Chance, A Law Firm Cuts London Back-Office Staff as It Embraces AI

In a stark signal of how artificial intelligence is reshaping the legal profession, Clifford Chance, one of the world's elite "Magic Circle" law firms, has announced plans to cut its London-based business services staff. The firm cited the "increased use of AI" as a key factor in the decision to restructure its operations.

The move, which puts approximately 10% of its London back-office roles at risk, highlights the growing impact of automation on the corporate workforce, particularly in administrative and support functions.

"Strengthening Operations" Through Automation
According to reports, Clifford Chance has informed its staff of a restructuring plan that places roughly 50 roles at risk of redundancy. The cuts will primarily affect the firm's business services teams, including departments such as HR, Finance, and IT. In addition to the job losses, the scope of another 35 roles is expected to change significantly.

While the firm is also shifting some work to its lower-cost global hubs in Poland and India, the explicit citation of artificial intelligence as a driver for the cuts is a notable development. It suggests that the efficiency gains promised by AI are beginning to translate into tangible workforce reductions in the legal sector.

A spokesperson for Clifford Chance confirmed the proposal, stating: "In line with our strategy to strengthen our operations, we can confirm we are proposing changes to some of our London-based business professional functions. The proposed changes could see the creation of new roles, changes to the scope of roles, revised team structures, and in some cases a reduction in roles."

A Sector-Wide Shift
Clifford Chance is not alone in this transition. The legal industry, traditionally known for its billable hours and heavy reliance on human labor for document review and administrative tasks, is rapidly adopting generative AI tools to automate routine work.

Competitors such as Mishcon de Reya and BCLP (Bryan Cave Leighton Paisner) have also recently initiated restructuring programs, citing technology adoption and the need to modernize operations as reasons for reducing support staff headcount.

As firms invest millions into AI platforms like Harvey and Microsoft Copilot, the "efficiency dividend" is increasingly being paid for by the removal of junior and support roles that AI can now partially perform or augment. Market analysts predict this trend will accelerate in 2026 as firms face pressure to lower costs and pass AI-driven savings on to clients.