Gibson Dunn & Crutcher LLP announced Friday that it has laid off 36 support staff workers across the firm’s nine offices in response to the declining demand for legal services.
News of the firm’s reductions comes as poor economic conditions continue to take a toll on the legal industry. Gibson Dunn is the fourth L.A. firm to announce that it has laid of attorneys and staff in an effort to cut costs.
“While this is a modest reduction in staff relative to many peer firms, it was nonetheless made reluctantly and with great regret,” said the firm in a statement. “Now, more than ever, however, we must take appropriate steps to serve our clients in the most cost-efficient manner.”
L.A. market leader Latham & Watkins LLP announced in February that it laid off 190 associates nationwide – about 12 percent of the firm’s associate base – and 250 support staff, including paralegals. Latham’s layoffs have been the deepest made by a large law firm since the economy turned sour.
O’Melveny & Myers LLP announced last month that the firm laid off 90 attorneys and 110 support staff firmwide. Paul Hastings Janofsky & Walker LLP has laid off 44 associates and 87 support staff firmwide.
Latham’s, O’Melveny’s and Paul Hastings’ L.A. and New York City offices took the brunt of the cuts. Gibson Dunn did not break down its cuts.
Gibson Dunn saw its profits per partner – a key metric of a firm’s financial performance – drop 1.3 percent in 2008 to $1.88 million, even as revenue increased 5.4 percent to $957 million.