Update (5:40): King & Spalding has confirmed this report. Read the statement after the jump.

We’ve heard all kinds of things about King & Spalding over the past week. We now believe that layoffs are in fact happening at the firm today.

The preliminary numbers we are hearing are that about 80 people will be let go today across all King & Spalding offices. But the Atlanta office should be the hardest hit, with half of the layoffs taking place there.

Update (5:45): The firm has now confirmed the news to Above the Law. The official numbers: 37 associates, 85 staff.

Most of our tipsters are surprised that the firm has managed to avoid layoffs for this long.

We understand that laid off attorneys are being offered a three month severance package. However, people are being told about the layoffs individually over the phone. Our sources do not expect an official firm wide announcement to go out. As one tipster put it:

We are told in person, not by email, so you’ll just see someone walk by crying. It’s scary.

After the jump, read the full K&S statement.

Earlier: Prior ATL coverage of law firm layoffs

KING & SPALDING — STATEMENT — LAYOFFS

While we have been working hard in many different ways to manage the firm to respond to the reduction in demand, the continuing decline in the U.S. and global economies has unfortunately made it necessary for us to make some reductions in our lawyer and staff ranks. This decision affects thirty-seven associates and counsel and eighty-five staff.

We regret the impact of this decision and appreciate the contributions our colleagues have made to our clients and the firm. We are providing each of them with a period of salary continuation to aid their transition.

– Robert D. Hays, Chairman, King & Spalding