Sidley cuts jobs as widespread layoffs continue

The cuts, which affect the firm's US offices, are in addition to "routine departures," according to an internal memo.

Sidley Austin said that it is expecting its work slowdown to continue for 12 to 18 months. "The economy continues to present unprecedented challenges to the firm and its clients," the memo said. "While the quality and diversification of our practice and our conservative financial management have put the firm in a strong position to deal with these challenges, we are not immune to the current turmoil."

The memo said it would provide the departing workers with financial and job assistance, but did not specify the length of the severance package it is offering.

Meanwhile, fellow US firm Baker Botts has also cut jobs, though the firm would not specify the number of positions eliminated. Legal blog Above the Law reported that about 30 lawyers have been laid off.

In a memo to the firm, Baker Botts managing partner Walter Smith said: "Just as our clients are struggling with budget cuts and a reduced demand for their products, so too has the overall demand for our services declined. This decline began in the fourth quarter of last year, and while certainly not threatening the long-term viability of the firm, is nonetheless significant."

Without offering any specifics, Smith wrote that the slowest practice areas saw the most job cuts.

Despite the layoffs, Smith wrote that Baker Botts is well positioned to survive the economic downturn because its practices are diversified and its offices are strategically located to serve client needs. Additionally, he said the firm has been conservative with its finances.

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