Nationwide Layoff Watch: More Cadwalader Coverage
(Because You Just Can't Get Enough, It Seems)
We resume our wall-to-wall coverage of the recent associate layoffs at Cadwalader, Wickersham & Taft. Here are the latest news articles and tidbits:
1. Highlights from an article by Anthony Lin, in the New York Law Journal:
[M]ost of the laid-off lawyers worked in Cadwalader's New York headquarters though the firm's Charlotte, N.C., office was also affected. All were in the firm's global finance and capital markets practices. Almost all of the affected lawyers were associates, said [management committee member Gregory] Markel, though he said one or two counsel may also have been let go.[Per Markel:] "We concluded that this was not a three-month phenomenon or even a six-month phenomenon."
Mr. Markel also said the firm was confident there would be no more layoffs in the future. After yesterday's action, the firm will still have around 260 lawyers in the two affected practices.
A number of law firms active in the area have already announced cutbacks. Clifford Chance terminated a six-lawyer group in November. Thacher Proffitt & Wood and McKee Nelson both have offered buyouts to large numbers of associates working in the area.
2. Highlights from an article by Nathan Koppel, in the Wall Street Journal (via the Law Blog):
"We were very careful about this, and we waited to see if there were any signs of the economy turning around" before letting lawyers go, says Cadwalader partner Gregory Markel, chairman of the firm's litigation department. "We didn't see any evidence of this turning around."Cadwalader is one of the most prominent law firms to recently announce layoffs, which could trigger a chain reaction among other firms; capital markets and real-estate practices are down at many firms.
It is still relatively rare for large law firms to engage in mass staff reductions. For one, many large law firms boast specialties, such as litigation and bankruptcy, that typically pick up during down economies.
3. From an observant tipster not at CWT (and presumably happy about it):
"CWT apparently doesn’t update its lateral recruiting page very often, as it currently claims to be looking for structured finance and capital markets attorneys in several offices. See here."
4. From a source at the firm, an interesting theory about how the news was disseminated, including a possible explanation for why it wasn't announced announced internally first:
[A] partner in Corporate leaked all this information about the Capital Markets situation to a bunch of associates. Some of it was false, some true. [Management was] really upset with him because they wanted this information to come in an official announcement or meeting, not in rumors flying around.I'm thinking they accelerated the press announcement because the information started leaking to outside sources, rather than staying inside. I still definitely think that they could have released it internally first, but there may have been other circumstances that I don't know about. I am not sure if the press release and the corporate partner things are related, but it seems like they would not have released it so abruptly if it didn't happen. Whenever something major happens, it is usually disclosed internally first.
5. Finally, in case you missed it -- we posted it fairly late yesterday, as a mere update to a previously published post -- here is CWT's reassuring email to 2007 summer associates who accepted their offers to return full-time.
Cadwalader Laying Off 35 In Wake of Slumping Markets [New York Law Journal]
Law Firm Cadwalader To Lay Off 35 Attorneys [Wall Street Journal]
More on the Sackings at Cadwalader [WSJ Law Blog]
(48) Comments
fuuuuuuuuuuuuuurst
LAT - have you heard anything about layoffs @ Skadden Chicago?
Latty Boy - have you heard anything about Latham and Jenner and Block in LA and Chicago respectively?
1:20 - For what it's worth, I have a buddy @ Jenner who told me that some associates have already been quietly let go and more are to follow...
1:20 - i call BS on the Latham stuff - I work at Latham LA and its been busier than ever here...Now Jenner is a whole another story - I'm also hearing that some firing activity is inevitable...
Word around Sidley is that a significant (but smaller than 35) group of cap markets associates is going to bite the dust this afternoon.
How about firing the partner at whom CWT is supposedly mad? That would feed 5, maybe 6, of those laid off associates for a year.
I wouldn't read too much into CWT layoffs for speculating about other firms. CWT doesn't really count. When a firm that is normal and/or prestigious does something, then make a fuss.
we're going to need an open thread soon to discuss what all these cap markets attorneys should "re-tool" themselves as
John Berkman, where do you get your information re: Sidley? It certainly isn't because you work there.
Cap markets attorneys should go from securitizers to security guards at Dennis Block's private club.
Laying off 5% of your employees is a big deal to lawyers? Man, you guys are pussies... you lawyers should move to France...
Any one besides 1:59 hearing things at Sidley? I've heard no layoff-related chatter. And I don't think this worldwide associates meeting in 15 minutes is going to be at all related.
I'll put my money on there being NO problems at Sidley. None.
Anyone want to wager?
There are definitely no layoffs at Sidley. This meeting is going to be hand-holding and "the market and our practices are strong" type stuff. It's the standard "this is how the firm did last year" meeting, moved up a little bit. The FY ends 10/31 here, so they crunched the numbers and are telling us where things stand. We're not nearly as leveraged as CWT, and we don't do that much capital markets work compared to everything else. There are definitely not that short-sighted.
1:18: What makes you ask about Skadden Chicago?
1:54 do you really work at Latham??? LA hasn't been "busier than ever here." December PACE in LA was extraordinary low and was hands down the slowest major office.... I'm not sure where you're getting your info from.... maybe January is picking up.
I hear from some friends that Cahill is having stealth layoffs also.
Any word about layoffs at Reed Smith? (spare me the TTT comments)
It's interesting that Markel, the head of the litigation department is doing all the commenting. Deafening silence from Bob Link, who made this mess in the first place.
Actually the Sidley year ends on 12/31, it is only that associate hours are measured on a TTM basis ending 10/31 for purposes of distributing year-end associate bonuses. As I said last night, the meetings were routine. There are no layoffs at Sidley. To the Sidley drone who took exception to my post last night, I am neither naive nor trying to mislead anyone. You might want to reassess your belief that noone besides management and executive committee partners knows anything about what's going on. In addition, anyone who has been at the firm for any real length of time should know how these firm-wide meetings go.
I don't think anything bad is happening at Reed Smith. We don't have much of a presence in global finance other than real estate, and our real estate practice is not really tied to Wall Street but more old fashioned development work and seems to be busy from what I can tell. The upcoming merger with Anderson Kill would seem to provide more opportunity for associates, not less.
Are all these layoffs limited to Capital Market groups, etc?
"LA hasn't been "busier than ever here." December PACE in LA was extraordinary low and was hands down the slowest major office" -- is that because work was extraordinary low or because so many associates had met their hours and were eager to take the time off? Mix of both IMO. (I'm not 1:54)
CWT was recruiting 3L's for it's NY office just 3 months ago
how is the M&A group at CWT and other firms doing?
4:52 if you were busy early in the then you probably had tons of vacation time to burn. If so your PACE wasn't affected. As always though December isn't very busy but compared to Decembers in years past this year was very slow
I heard that Reed Smith was planning to layoff a bunch of recent laterals and junior associates in its LA office. True?
Latham doesn't fire associates. It just doesn't give you a bonus and holds you back a year. Most people get the hint. I hear that bonuses will be higher this year but that more than usual will get hit with performance problems.
2:48, where is all this gossip coming regarding Reed Smith? Are you just making it up? As far as I know, things are going swimmingly in Los Angeles. The firm has a whole just reported a 35% increase in revenue, and that was before the $3MPPP Hong Kong group was brought in .... I am not saying that firm leadership is not pretty ruthless in their attempts at moving up the ranks, but I don't see any mass layoffs on the horizon. Reed Smith does not have a lot of extra dead weight to begin with, as the annual associate classes tend to be pretty small.
2:55, any truth to the rumor that Latham had stealth layoffs with its last round of performance reviews?
1:09 LW doesn't lay people off. Some folks just choose alternative career options (after getting a shitty bonus and not advancing in seniority/base pay).
I hear that OMM and GDC are matching market in that respect. Maybe they will go to Reed Smith since things over there are going swimmingly. Wonder if the $3MPPP Hong Kong group can actually collect on those bills. I hear Asia clients give themselves huge discounts. Good luck with that.
4:26, what I meant to ask was whether more people than usual are being held back/not given bonuses due to so-called poor performance (hence a 'stealth' layoff). do you perceive that an unusually large number of people will be given negative reviews due to economic factors? thanks.
Biggest mystery is the cuts from NW's group.
Life is short.
I have heard rumblings from all over NY about the "bar being raised at various firms" -- i.e., stealth "performance" layoffs -- all along the same numbers as Cadwalader.
Cadwalader takes a lot of crap on this board, in most instances rightly so...
But say what you want, being open and honest with their associates (and taking the related PR hit), giving them a severance package (including a full year medical/dental, which is way above market) and not disguising their leaving as "performance related" -- that strikes me as far better than what the other firms are (purportedly) doing.
Agree with 2:02. The severance package seems generous. I hope the year of healthcare becomes a new standard. Having been laid off in the early 2000's, I know first hand how expensive healthcare can be, esp. when you're already living on savings.
have heard other firms in new york including skadden, clifford chance, dewey, sidley, linklaters and latham have asked quite a few more people to leave as a reult of performance, but really the motive is the economic situation and the fact they are not overly busy
pretty sure this is happening at OMM-- bar has gotten higher and you will get axed for performance if you aren't careful (even in lit, which is where my experience lies). I think you need to be established sub-par (6 months plus of poor hours + not so great performance). But be careful all...times they are a changin.
I heard Simpson canned a midlevel litigator recently, among others (ie, 3 months to look)
The corporate group in Reed Smith NY is decimated, after the defect by the partners and associates last year to another firm.
I'm at Sidley and haven't heard of anyone being asked to leave or even rumors of such. In fact, the only rumors I hear about problems at Sidley are on this board. The firm is being pretty clear that they expect to ride out the storm. Granted, words are only words, but they could be a lot more vague about it and they're choosing not to.
Good friend of mine got laid off from Latham for "performance" reasons. Interesting how one can go years with very positive reviews and then get canned after a supposed "underperforming" year.
4:06, what did they tell your friend? did your friend just take the hint, or did they explictly say 'you have six months to find something else'?
Mayer Brown has been laying off for some time, especially in structured finance and real estate. They're trying to keep it quiet, so its the old "please get out within 6 months". Now they are also suggesting people move to their new offices in Asia (Phuket or Hanoi anyone?)
1:50-- Where are you getting your info? I'm in finance at MB, and I haven't heard anything. Is this in a particular office?
Even after all these layoffs, Cadwalader still had a huge invitation-only dinner at the REBNY event last night. I guess they had a choice - let 35 hard-working people keep their jobs, or entertain the firm's real estate clients (if they have any left)...
Even after all these layoffs, Cadwalader still had a huge invitation-only dinner at the REBNY event last night. I guess they had a choice - let 35 hard-working people keep their jobs, or entertain the firm's real estate clients (if they have any left)...