By Natalie Rodriguez

Law360 (April 23, 2020, 7:44 PM EDT) -- Husch Blackwell LLP was among the latest wave of firms to announce layoffs and new cost-cutting measures Thursday in response to the economic downturn spurred by the coronavirus pandemic.

U.K.-based Travers Smith LLP also announced adjustments to partner compensation, while Orrick Herrington & Sutcliffe LLP's U.K. branch and Dinsmore & Shohl LLP reportedly slashed compensation — and staff, in Dinsmore's case.

Starting on May 1, Husch Blackwell fixed-income partners will see a 10% pay cut, the firm said. Husch Blackwell also said that it had laid off and furloughed an unspecified number of attorneys and staff, transitioned some employees to early retirement and reduced salary and hours for others. The measures affected less than 10% of the firm, and many employees have been placed on furlough due to there being little work for them while the firm operates on a remote basis, according to a statement.

"This crisis is more prolonged and extensive than early estimates indicated, and while we made every effort to avoid these actions, they have become necessary," Husch Blackwell Chairman Greg Smith said in a statement.

The moves build on earlier pay cuts taken by senior leadership at the approximately 600-attorney firm. Last month, the firm's equity partners had cut their monthly draws by another 15% of base compensation, bringing up partner holdback to 35%. All of Husch Blackwell's managing directors and C-level executives also voluntarily took a 10% cut in salary.

Ohio-based Dinsmore has also laid off and furloughed "a small number" of staff in response to the economic downturn, as well as deferred a portion of partner distributions, the firm confirmed to Law360 late Thursday. The news was first reported in Above The Law, which reported some of those hit by the layoffs and furloughs included attorneys.

"The firm continues to have a strong pipeline of work. That said, we recognize that the economic impact of COVID-19 is evolving quickly, and in order to anticipate its future impact, we have taken swift and prudent measures," the firm said in a statement shared with Law360 late Thursday.

Meanwhile, in the U.K., Travers Smith announced that it would be reducing monthly draws for all of its partners and that partner profit distributions would be deferred until the economic landscape becomes clearer.

The firm had furloughed some staff when it closed its offices, but has continued to pay them full salary, it said.

"We believe that the contingency measures we have taken are in the interests of all at the firm, as well as our stakeholders and wider society. They are designed to protect the financial stability of the firm and help us better withstand the impact of the current crisis," said David Patient, Travers Smith's managing partner, in a statement, adding that the "measures are interim and precautionary."

Also across the pond, Orrick confirmed late Thursday to Law360 that it had begun implementing previously announced measures in the U.K., consistent with local regulation. The firm has proposed a voluntary, graduated salary reduction scheme for UK associates, which ranges from a 10% cut for the most senior associates to a 2% cut for junior members. The associates had already received their 2020 salary increases, the firm said. The U.K. specific  voluntary pay cut scheme was first reported by U.K.-focused publication The Lawyer.

The latest slate of pay cuts and furloughs follows a number of other firms implementing similar measures this week, including McDermott Will & Emery LLP, Clifford Chance LLP, Venable LLP and Ogletree Deakins Nash Smoak & Stewart PC.

--Editing by Alanna Weissman.

UPDATE: This article has been updated to include additional information and comment from Dinsmore and Orrick.

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