King & Spalding announced late Friday that it laid off 37 associates and counsel as well as 85 staff firmwide.
"While we have been working hard in many different ways to manage the firm to respond to the reduction in demand, the continuing decline in the U.S. and global economies has unfortunately made it necessary for us to make some reductions in our lawyer and staff ranks," the firm's chairman, Robert D. Hays Jr., said in a statement.
The cuts constituted 4.2 percent of the firm's 875 lawyers and 6.4 percent of its nonpartners.
King & Spalding has 384 associates firmwide, with 165 in Atlanta, according to its Web site.
"We regret the impact of this decision and appreciate the contributions our colleagues have made to our clients and the firm. We are providing each of them with a period of salary continuation to aid their transition," said Hays in the statement.
King & Spalding's revenue increased by 6 percent last year, to $652 million, as the firm continued to expand, but profit per partner dropped almost 12 percent, to $1.23 million.
Previously Hays said King & Spalding ended the year slightly below budget due to a drop off in demand and slowed collections. Revenue per lawyer dropped 0.5 percent, to $810,000.
The layoffs at King & Spalding are the largest to be announced so far in Atlanta.
Also Friday, Akin Gump Strauss Hauer & Feld laid off 47 associates and 57 paralegals and staff in the United States in response to the economic downturn, a source within the firm confirmed to Legal Times. In addition, Akin Gump has entered into redundancy consultations in the United Kingdom, according to an e-mail sent out by firm Chairman R. Bruce McLean.
Earlier in the week O'Melveny & Meyers laid off 90 attorneys and 110 staff, while Orrick laid off 100 lawyers and 200 staff.
Latham & Watkins stunned the national legal community at the end of February when the firm announced it was laying off 440 employees -- including 190 lawyers, comprising 11 percent of its nonpartner attorneys.
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