We had been hearing rumors this morning of associate layoffs at Thacher Proffitt & Wood. The rumor mill was claiming that somewhere between 30 to 40 associates were given pink slips by TPW.
As is so often the case, the truth is somewhat different, but the rumors not completely unfounded. Thacher Proffitt has not laid off any associates just yet, and certainly not as many as 40. The firm has, however, notified a smaller number of associates — namely, 24 non-first-year associates — that their being laid off in January is “a near certainty.” It is also encouraging first-year associates in its Structured Finance and Real Estate practice groups to look for other opportunities.
In response to inquiries from us, TPW issued this statement, through a spokesperson:
It is no secret that the credit crisis has deeply affected our Structured Finance and Real Estate practices, which are large practices in our Firm. Therefore, we have taken the painful step of notifying 24 associates in those practice areas that if we do not see a substantial improvement in the market, it is a near certainty that they will be laid off in January strictly for economic reasons.
These associates are good, hardworking lawyers that any law firm would be fortunate to have. Unfortunately, these associates are working in areas that are currently slow and that will not be active for some time to come. We are delaying a decision on economic layoffs for as long as we can; however, we believe it would be unfair to the associates potentially affected to give them no warning of this possibility. We are encouraging these associates to seek new opportunities and, should they leave the Firm, we will compensate them through the end of March.
In addition, we have offered first-year associates in our Structured Finance and Real Estate groups a four month severance package should they leave the Firm. They are under no obligation to take this offer, [which] is strictly voluntary; however, we feel it is in these associates’ interest to explore other opportunities as well, as we are concerned that we will not be able to provide them with the best work experience at this formative stage of their careers.
We thank Thacher Proffitt for getting back to us so quickly. And we commend the firm for its candor about the possible layoffs, as well as its praise for the affected associates as lawyers.
If you have any associate layoff news that has not been previously reported, please contact us, by email (subject line: “Nationwide Layoff Watch”). Thanks.