According to “a tipster” on law blog Above the Law, the international firm is reducing associate salaries on a case-by-case basis, and is sending memos to individuals affected.
A spokesperson in the Sydney office responded to The New Lawyer queries: "Each Baker & McKenzie office makes decisions about salaries in line with the local market. We are not embarking on a salary reduction strategy in our Australian offices."
The ABA Journal has published a response from the US: “Similar to other law firms, we have considered and have been using a range of options to reduce costs across the firm.
“In select instances, we have reduced some salaries to preserve jobs. We are striving to be flexible and to retain as much of our talent as possible with the knowledge that the economy will inevitably brighten.”
The move follows recent layoffs of 38 attorneys and 86 paralegals in the firm’s North American offices.