Los Angeles law firm O'Melveny & Myers LLP said late Wednesday that it is laying off 90 attorneys approximately 10 percent of the firm's associate and counsel base and 110 support staff as the economy continues to take its toll on the legal industry.
An O'Melveny spokeswoman said the majority of the cuts will take place in the firm's seven U.S. offices, with its two largest offices, New York and Los Angeles, seeing the brunt of the cuts.
Like L.A.'s other three largest firms, O'Melveny has been experiencing a slowdown in transactional work merger and acquisition deals, and corporate financing transactions since the economy soured. As a result, the firm is making an effort to reduce its workforce.
"We are taking these steps today to adjust our staffing levels to current demands and those we anticipate going forward," said O'Melveny chairman A.B. Culvahouse in a statement. "While our litigation practice continues to be very active and robust, we are taking these actions largely to address the slowness in our transactions area."
The news of O'Melveny's layoffs follows an announcement Friday that Los Angeles market leader Latham & Watkins LLP laid off 190 associates 12 percent of its associate base and 250 support staff. Thus far, Latham's cuts are the deepest by a large firm.
Last month, O'Melveny posted a 3 percent drop in revenue, to $908 million, while profits per partner a key metric of a firm's financial health dropped 7 percent, to $1.5 million.
Departing associates and counsel will receive a three to six month severance package depending on full years of service to the firm.
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