Law Firm Announces Layoffs

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L.A.-based Latham & Watkins LLP announced Friday that it is laying off 190 associates nationwide about 12 percent of the firm’s associate base and 250 support staff, including paralegals. The layoffs are the deepest cuts made by a large law firm since the economy turned sour.

Legal industry insiders said Latham’s ties to Wall Street have resulted in the firm being hit harder than L.A.’s other three largest law firms. Several years ago, Latham made an aggressive push to strengthen its ties with New York’s financial institutions. During the economic boom, Latham lawyers worked on high-profile merger and acquisition deals, debt financing transactions and handled residential mortgage-backed securitizations.

“In their quest to be a major power globally, Latham opened up in New York with the plan that they were going to make that their primary office and focus on Wall Street,” said Alan Miles, an L.A. legal recruiter. “Wall Street has been crushed by the economy, and as a result Latham is suffering.”

Still, Miles said the layoffs were stunning.

“I never thought I would see something like this from Latham,” he said.

The firm did not breakdown the number of associates and support staff who will be laid off in the firm’s L.A. office, but New York and Los Angeles are expected to take the brunt of the cuts.

“The depth and duration of this recession is unprecedented and we expect the health of the global economy to remain weak at least through 2009,” Latham Chairman Robert Dell said in a statement.

“While our diversified practices and global platform provide the stability and strength to navigate these turbulent market conditions, we must adjust our staffing levels in line with the projected needs of our clients.”

Associates who were laid off will receive six months of severance pay, capped at $100,000, and medical benefits.

Earlier this month, Latham announced its 2008 revenues and profits per partner, a key metric of a firm’s financial wellbeing. Latham’s revenue fell 4 percent from $2 billion to $1.9 billion, and profits per partner dropped 21 percent, from $2.3 million to $1.8 million.

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