The finance division in one of the State's biggest legal firms, A&L Goodbody, will be separated from its commercial department in a reorganisation announced this week to staff.

The move will reduce by about half, the size of the firm's commercial department, where about 130 of the firm's 250 fee-earners work. A&L Goodbody is one of the longest-established partnerships in Dublin, with offices also in Belfast, London, Brussels, New York and Boston.

The division includes banking, finance and financial services and while these were previously integrated in its commercial department, the firm's managing partner, Mr Paul Carroll, said yesterday that the division would be established as a discrete department in its own right.

Ms Catherine Duffy has been appointed head of the new department. She was previously the leader of the group co-ordinating the firm's activities in the area.

The commercial department will retain venture capital, mergers and acquisitions and capital markets activities, said Mr Carroll. The head of that department is Mr David Sanfey.

Mr Carroll attributed the change to modernisation of the firm's structures, in line with the growth of the banking and financial services division.

About 55 fee-earners will work in the new department in a change planned for about two months, Mr Carroll said. He added: "This is giving credence to something which has existed for many years in any event."

Asked whether any individuals might leave the firm as part of the process, he said: "What this will do will make us more efficient. We have everybody on board."

Banking, finance and financial services is regarded as a big profit centre for A&L Goodbody, particularly at the IFSC. But while corporate activity generally has diminished in the economic downturn, Mr Carroll said that the activities remaining in the firm's commercial department were strong.