This morning Allen & Overy quit beating around the bush and sent a firm-wide email announcing that there’d be some changes around there — major changes. It was with a heavy heart that firm managing partner Wim Dejonghe and senior partner David Morley inflicted a world of pain on its personnel:
Since the beginning of December, the Board has been conducting a thorough review of our business in response to the unprecedented economic conditions in which we are now operating. The inescapable and reluctant conclusion of that review is that there is simply not enough work to keep all of our people busy, and we do not see that changing in the foreseeable future.
In the beginning, Allen & Overy said: let there be layoffs, half in London, the rest from the network:
• Partners – A global reduction in partner headcount of approximately 9% (47 partners) and around a further 7% (35 partners) subject to equity adjustments. Around half of those affected will be London partners. This process is at an advanced stage and will be completed by the end of this financial year on 30 April.
• Other fee earners – A proposed 9% reduction in numbers of other fee earners globally. Around half of these are proposed to be in London, where the redundancy programme we undertake is likely to result in approximately 100 other fee earners leaving the firm. This will be subject to local employment processes which will commence immediately.
• Support Staff – A proposed 9% reduction in support staff headcount. Again, around half of these people would be in London, where roughly 100 staff are likely to be affected. This will also be subject to local employment law and, where appropriate, consultations, which will commence as soon as possible.
And then the firm created a firmament in the salaries and billable hour rates:
• Pay – For 2009 pay will be frozen for all staff globally – fee earning and support staff alike, subject to local employment law, where applicable.
• Fee rates – Acknowledging the impact of the global financial crisis on the firm’s clients, our headline billing rates are to be frozen at 2008 levels until further notice.
A spinoff, the full email, and whether Deirdre Dare is causally related to this mess, after the jump.
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