Dorsey & Whitney has laid off a "limited number" of its 1,100-plus attorneys and staffers, a significant escalation from the steps the Am Law 100 took in early April to ward off the economic effects of the COVID-19 pandemic.

The firm announced the new austerity measures in a statement Tuesday night.

The Minneapolis-based law firm has already capped the value of its monthly equity partner distributions. But starting in June, the firm's attorneys, as well as its staff who make more than $150,000 per year, will see a 10% to 20% cut in pay for the rest of the year. The firm has also slashed the duration of its summer associate program from 10 weeks to seven, and has deferred the start date of its first-year associates to January 2021.

"After intense deliberation, we made these hard decisions so that we will continue to be a strong, efficient law firm," Bill Stoeri, the firm's managing partner, said in a statement. "I am extremely grateful to all of those who have served the firm, and for those who will continue to work to serve our clients in this new environment."

These measures come one month after Dorsey said it was furloughing less than 4% of its workforce and cutting its contributions to employees' retirement plans by one-third.

Dorsey has offered severance or benefit packages to the employees it has laid off. It's also reducing billable hour guidelines for its associates and other attorneys. Those same associates and other attorneys could receive "special productivity bonuses at year-end," the firm said.

Stoeri acknowledged that these measures take "an emotional toll" on the firm. But he said they were necessary because of the "shifts in demand and an evolution in the way law firms will work into the future are clear to see on the horizon."

"We are taking meaningful action now to navigate this new era in alignment with our clients," he added.

Dorsey saw both revenue and head count growth in 2019, according to The American Lawyer's Am Law 100 rankings. The firm's gross revenue rose by 5% last year, to $387 million from $368 million. It added 17 lawyers to its ranks last year, a 3.4% increase.

Dorsey's profits per equity partner increased slightly by 1.7% last year, rising from $705,000 to $717,000. The firm's profit margin stayed at 36% last year as well.

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Dorsey Caps Partner Draws, Furloughs a Fragment of Its Workforce