Weber said the firm was continuing to pay very close attention to its cost base and discretionary spending as part of the normal budget planning process.

"It is correct that we are not generally proposing salary increases this year, but exceptional performance will continue to be appropriately recognised. Staff who are promoted will also receive salary increases," he said.

"Limiting salary increases was not an easy decision, but it was one that we felt was appropriate, given the prevailing market conditions and to preserve jobs. Partners will also be lowering their earnings next financial year."

Employees were informed of the firm's decision in an email last Friday.

- Sarah Sharples