Ashurst is slashing the amount of federal government work it takes on amid a broader reduction in how much money the public service is spending on external advisers, with 60 lawyers and seven partners at the top-tier law firm’s Canberra office switching to lower-cost rival Thomson Geer.

Thomson Geer’s chief executive partner Adrian Tembel said the move represented a new phase in the legal market. Australian firms are seeking to benefit from top-tier outfits’ need to maintain high margins to meet overheads and international contribution costs.