Smaller firms with about 50 partners or less shed numbers in the past year just as the big end of town, but many argue their nimbler structures make them more competitive in a tough market.

Smaller firms, including DibbsBarker and Holding Redlich, reduced partner numbers, while others including Russell Kennedy, Clyde & Co and Squire Patton Boggs, increased numbers, according to The Australian Financial Review's Law Partnership Survey.