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The Reed Smith law firm said it will cut salaries for all U.S. associates by 10 percent across the board, effective July 1.

In an internal memo that was originally leaked to the Web site Abovethelaw.com Wednesday afternoon, managing partner Gregory Jordan said the firm had already adopted changes to its business plan because of the recession, changing client demands, and the competitive landscape in the legal industry. Among other things, Jordan said it has meant lower compensation levels for partners, though he did not specify by how much.

A spokeswoman for the Pittsburgh-based firm, which has about 280 employees in Philadelphia, confirmed the authenticity of the memo.

Jordan said the firm will set the salaries for the incoming class of first-year associates in the United States at a later date, but they will be at least 10 percent lower than the current levels. Jordan said the firm will freeze associates’ salaries in its European and Middle Eastern offices, and will set the starting salary for newly qualified associates in the United Kingdom about 10 percent lower than the current level. Asian operations are not affected by the action.


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