DLA Piper has conducted its second US redundancy round so far this year, cutting 21 associates and 100 staff, writes The Recorder.

The attorney cuts amount to less than 2% of its US lawyer headcount of 1,380.

The firm has already taken several steps this year to control costs, including cutting partner and associate salaries. In February, it cut 80 associates and 100 staff in the US, and 30 attorneys and 110 support staff in the UK.

It also said last month that it is considering ditching lockstep associate promotion.

A firm memo sent to associates read: "Unfortunately economic weakness has continued, demand across the legal sector remains soft, and it is increasingly clear that major improvements in the US and global economy will not occur before 2010. While the firm's financial position remains strong, a tightly managed cost structure is essential to compete effectively during these uncertain times.

A firm spokesman said management had no comment beyond what was in the memo.

Consultant Peter Zeughauser of the Zeughauser Group expects DLA will not be alone.

He said: "It's nothing special about DLA, it's just an indication of what's to come. I think you'll see other firms turning to similar measures."

One managing partner of a national firm who declined to be named said late summer and fall will be the next layoff season.

He commented: "I think the recovery will stall. Firms will act decisively to protect from a huge hit to profitability. They'll trim in late summer or fall so they can prepare for a rebound next year. The smarter firms will cut associate compensation, because it's a better long-term solution."