July 18 (Bloomberg) -- Weil Gotshal & Manges LLP, the ninth-highest grossing U.S. law firm, gave law students working there this summer the option to defer their full-time start dates from January 2011 until January 2012, according to an internal memo sent by the firm’s management committee.

Any summer hire who gets a job offer and defers the start date will receive health-care benefits, the committee said in the memo yesterday. A hire who spends the year working at a firm-approved public service job, clerkship or client assignment will also receive a $75,000 stipend, according to the memo.

“Please be assured that the firm is performing well and our balanced platform has helped us remain strong, even in this challenging economy,” the management committee said in the memo. “The firm is now offering the voluntary deferral program to the current summer class to counterbalance the overall lack of associate attrition.”

Weil fired 79 staff members in June, saying reduced demand for legal services and client pressure is forcing the firm to increase its efficiency and competitiveness. The firm already deferred the start dates of first-year associates who were originally scheduled to arrive this fall until January 2010 or 2011.

Bernadette DeCelle, director of marketing and business development for New York-based Weil, provided a copy of yesterday’s memo to Bloomberg News.

Law firms traditionally hire law students for summer internships, then offer them full-time jobs that begin after graduation. This year, many large U.S. firms are revamping recruiting policies and deferring start dates for new graduates in response to the economic slump.

Orrick and Morgan

Last week, San Francisco-based Orrick, Herrington & Sutcliffe LLP became the first firm to announce it won’t hire law students next summer. Philadelphia-based Morgan, Lewis & Bockius LLP followed, deferring until October 2011 the start of full-time employment for this year’s summer associates.

The shrinking market for law school graduates coincides with a shift in legal services. Control has moved from law firm partners, who traditionally raised their rates every year, to the heads of corporate law departments, who demand that firms perform more efficiently and cheaply.

Weil Gotshal represents General Motors Corp. and Lehman Brothers Holdings Inc. in Chapter 11 bankruptcy cases.

The 1,190-lawyer firm had revenue of $1.2 billion last year, according to American Lawyer, a trade publication. Gross revenue rose 4.75 percent from the previous year and its profit per partner climbed 7.5 percent, the magazine reported.

To contact the reporter on this story: Cynthia Cotts in New York at ccotts@bloomberg.net.

Last Updated: July 18, 2009 00:01 EDT