The cuts include 47 partners, or 9% of its total. Another 37 partners will be “subject to equity adjustments” in response to market conditions.
The firm’s private client team will spin off to form a new firm starting in May, to be known as Maurice Turnor Gardner LLP.
A salary freeze for all staff will also be imposed.
Around 100 associates will be let go. Half of the cuts in both partner and associate numbers will come in London.
Founded in 1930, Allen & Overy has approximately 5,500 staff and 31 offices worldwide. It is part of the Magic Circle of London-based law firms.