Allen & Overy To Slash 400 Jobs’s international news section is reporting on a memo that’s just been distributed around magic circle firm Allen & Overy.

The memo reveals that the firm has announced a major "restructuring" that will cut partner, fee earner and support staff headcount by 9 percent — leading to the loss of more than 400 jobs. reports

The restructuring, which will also see the firm freeze salaries and billing rates at 2008 levels and spin off its five-partner private client team, is expected to cost the U.K. giant around 44 million pounds ($63.3 million).

A&O told staff Thursday that 47 partners (9 percent of the firmwide total) are expected to leave the firm by the end of the financial year with a further 35 partners (7 percent) expected to see their allocations in the equity reviewed. It is expected that half of these 35 partners will be demoted to salaried partner status while the rest will see their equity reduced.

Associate headcount is set to be reduced by around 200, with around 200 support jobs also set to go. Around half of the cuts at partner, associate and support level will come from A&O’s London headquarters.

In addition, A&O is to ask equity partners to inject an average of 30,000 pounds ($43,000) of fresh capital, based on a 1,000 pound ($1,400) per equity point scale.

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