Nationwide Layoff Watch: Reed Smith Cuts Associates & Staff

Reed Smith already laid off 115 people in early December. Here at the end of the first quarter, the firm has decided it needs to reduce headcount even further. Above the Law has been able to confirm that Reed Smith is letting go 26 attorneys and 74 staff across its U.S. and U.K. offices. A firm spokesperson provided us with this statement:

Specifically, we are initiating the outplacement of 17 associates in the U.S. and have started a consultation process in London that will potentially result in nine associate redundancies. All of the affected associates are in the corporate and real estate areas of our practice, where demand for our services continues to be slow. Overall, this action will affect less than 4% of all of our associates.

I should’ve learned, to play the guitar.
I should’ve learned, to play them drums.
Maybe get a blister on your little finger.
Maybe get a blister on your thumb.

These layoffs bring Reed Smith’s total cuts to 215 employees in the past four months. Let’s hope this is the last round. Good luck to everybody who has been let go today.

Read the full statement after the jump.


REED SMITH — STATEMENT — LAYOFFS

I am writing to let you know you that we are taking steps today to reduce our personnel capacity in the U.S. and UK. While we regret having to take these actions, they are a necessary part of our continuing effort to manage our firm effectively during this challenging economic environment.

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Specifically, we are initiating the outplacement of 17 associates in the U.S. and have started a consultation process in London that will potentially result in nine associate redundancies. All of the affected associates are in the corporate and real estate areas of our practice, where demand for our services continues to be slow. Overall, this action will affect less than 4% of all of our associates.

In addition, we are outplacing 55 support personnel in the U.S. in a number of departments and offices. We are also commencing a consultation process in London that will potentially result in up to 19 redundancies of support personnel. Taken together, these U.S. and UK actions will affect less than 5% of support personnel firmwide.

While most of our practices are performing well so far in 2009, our capacity has continued to materially exceed demand in certain parts of our transactional practice. Unfortunately, we do not foresee significant changes in this picture in the near or medium term. Under these circumstances, the need for prudent management dictated the adjustments we are making today. In addition to the financial impact, these changes will enable associates who remain to be more fully utilized.

The individuals affected by these actions have served our clients well and made valuable contributions to the firm, and we regret their departures very much. They will each receive severance and other assistance from the firm. We ask that all of you be supportive of them during this transition.

Earlier: Nationwide Layoff Watch: Reed Smith Cans Staff, Associates, ‘And Your Little Dog Too’

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