The new owner of law firm Slater and Gordon (ASX:SGH) will cut 7 per cent of its Australian workforce following a $547 million full-year loss announced last month.

The compensation specialists employ 1210 staff in Australia, suggesting about 85 people will lose their jobs.

The full-year loss included a $350 million write-down in the value of its British business.

It emerged last month that Australia’s first ASX-listed law firm would be taken over by a number of hedge funds including Anchorage Capital, after the conversion of debt into equity.

“A number of [Australian] office locations nationally are impacted, but the majority of our existing national office network will be maintained,” the law firm today told investors.

The cost-cutting and structural changes were “necessary for the future sustainability of the Australian operations”, the law firm said.

Slater & Gordon’s share price rose 3 per cent to 7.1c in early trade, valuing the law firm at about $25 million.