Law firm Reed Smith said it will slash salaries by nearly 20 percent for first-year associates who are joining its U.S. offices in January.
Starting salaries for the eight attorneys scheduled to join the Pittsburgh office will be $110,000, down from $135,000 in 2008. In larger markets such as New York, Chicago and Washington, D.C., the first-year associates will earn $130,000, down from $160,000 last year.
Those affected would normally have started working for the firm in September but their start date was deferred because of the economic downturn. Reed Smith is hiring 51 associates next year in its 15 offices in the U.S.
The Pittsburgh-based firm also reduced the number of hours that first-year associates are expected to bill -- from 1,900 to 1,700.
Gregory Jordan, the firm's global managing partner, said the cuts came in response to client feedback about the cost of legal services.
It has about 1,600 lawyers in 23 offices worldwide. Earlier this year, Reed Smith laid off 17 associates in the U.S. and nine associates in London. It also laid off 74 support personnel.
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