The world's largest law firm could lose almost one in ten of its London lawyers under redundancy plans announced today.

Clifford Chance, which employes 3,800 lawyers worldwide in 30 offices across 21 countries, said that up to 80 of the lawyers based in its London offices at Canary Wharf face the axe.

The law firm is the most high-profile legal casualty of the recession to date and brings to more than 2,000 the estimated number of lawyers in consultation over redundancy across legal practices in England and Wales.

Lawyers across all areas of work areas are expected to be affected by the redundancy programme, which involves the 880 London staff —— both lawyers and paralegals — over four to five weeks. But newly qualified lawyers are expected to escape the axe.

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The firm's New York office has already made cuts in its litigation practice and partners have had to stump up an average of £100,000 each in capital contributions.

Jeremy Sandelson, the firm's managing partner, said: "We have not taken this decision lightly. However, like any other business, we have to respond to prevailing market conditions. Our clients and their legal services needs have undergone a significant change over the past year.

"We need to reflect that in the London office, and that includes ensuring that our level of staffing is appropriate for today's economic realities. By taking action now, we believe we will be well placed once conditions begin to improve."

Several other middle-ranking firms and many smaller firms have launched redundancy consultation schemes, according to The Lawyer's "legal job watch", but the numbers at Clifford Chance, the first "magic circle" firm to announce a redundancy programme, are by far the highest.

Other consultations affect 180 at Field Fisher Waterhouse; 95 at Hammonds; 76 at Eversheds; 64 at Dickinson Dees; 62 at Cobbetts; 46 at Howard Kennedy and 32 at Shoosmiths.

The redundancies are hitting partners as well as associates (non-partners) and just under half of all firms are thought to be affected.

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