Paul Jenkins says the cuts are necessary to preserve jobs.

Those busy areas may include the equity capital markets, infrastructure, financial services, dispute resolution, restructuring and employment practice groups, which are still experiencing demand.

The current bonus program would stay in place, but only half of each bonus would be paid in line with the firm's usual July 2020 timeline with the remainder coming in November.

Salary reviews for the coming financial year were also deferred to the start of November.

Ashurst global managing partner Paul Jenkins said that he understood the cuts would be tough for staff, but that they were necessary to manage the business "prudently" in case the economic fallout of COVID-19 was protracted.

"The decisions we have made are difficult and we do not underestimate the impact they will have on our people. They are necessary to protect jobs and avoid the redundancy situations that other professional services firms have needed to consider," Mr Jenkins said.

"As a global business, Ashurst like many others is affected by the economic disruption being caused by COVID-19.

"We are looking ahead in a responsible way, and must anticipate that given the global economic slowdown we may see less activity in the markets in which we operate."


He said it was apparent that some of these markets "face a long road to recovery" but was pleased that several sectors in Asia, particularly in greater China, were already picking up as the region started recovering from the virus.

The firm already cut its casuals back to few or no hours and asked staff in quiet teams to consider taking leave or moving to part-time arrangements in March.

The Law Council of Australia warned on Thursday that the legal profession was starting to feel the pinch from the pandemic's economic fallout, though the pain had kicked in earlier for small firms rather than top tiers.

But several larger firms implemented belt-tightening measures before the Easter break, and Ashurst is not the first to implement salary saving measures.

MinterEllison has introduced "COVID leave" which staff are required to take this year as well as halving partner pay, while Herbert Smith Freehills has cut partner pay and frozen the salaries of all other staff for six months.

Norton Rose Fulbright has also slashed partner pay and cut staff hours and pay by up to 20 per cent dependeing on client demands.