Pillsbury Winthrop is continuing cutbacks with voluntary redundancies after freezing the salary levels of its 900 employees

The firm is laying off approximately 12 permanent staff who will receive a severance package that includes $3,000 (£1,908).

A spokeswoman said the firm had first approached staff about the 12 redundancy places in the summer when 15 employees applied to leave. The cuts will affect the New York, Connecticut and Silicon Valley offices. The spokeswoman blamed the cutbacks on the economic downturn.

Pillsbury recently gained notoriety after releasing a strongly-worded press release about Frode Jensen, a former partner who had hoped to join Latham & Watkins. The firm is currently resolving a multimillion dollar lawsuit brought by Jensen through arbitration.