The firm is in consultation with 75 staff, including partners, fee earners and support staff across its offices in Leeds and London, and its Newcastle upon Tyne HQ.
Watson Burton employs a total of 272.
Training and recruitment are unaffected, with five trainee solicitors joining the firm this September.
At the end of last year Watson Burton launched its first redundancy consultation, which resulted in 10 job losses.
Watson Burton was founded in 1811.