Nationwide Layoff Watch: Is Today ‘Layoff Day’ at Cadwalader?
We’ve been hearing, from multiple sources, that something big is going down today at Cadwalader, Wickersham & Taft. Some of our sources have dubbed it “Layoff Day,” although we don’t know yet whether the news relates to layoffs or something else.
Here’s what we’ve been hearing:
1. One can check the availability of conference rooms on the CWT intranet. Today’s schedule shows that Mitch Walsh, the firm’s executive director, has reserved an entire floor for the day that consists of nothing but conference rooms, and Patti Ellis, the firm’s head of Associate Development and Recruitment, has reserved a half dozen other conference rooms.2. A meeting of the Firm Committee is scheduled in the afternoon.
3. A rumor is going around of a merger (although one source says, “I don’t know why they would need all the conference rooms to do that,” and another asks, “Who would we merge with?”).
4. Another theory is that the firm is going to inform associates of their bonuses individually (although one tipster wonders why they wouldn’t they have made the announcement ahead of time, so people could plan their schedules accordingly).
5. Yet another possibility: the firm will be laying off associates, and they will be using the rooms to process people. This is what one source declares: “Layoffs are starting this week in areas impacted by the credit crunch: capital markets, global finance, etc. No ideas as to numbers.”
6. Some claim that “stealth layoffs” already took place last month, with five partnership-track associates quietly let go in Capital Markets right before the new year.
7. Some Capital Markets associates were previously offered moves to other departments, including Corporate, Financial Restructuring, and Litigation.
Sounds grim. One source sums up: “No one knows for sure, but today looks like it will be the culmination of rumors circulating for over a month now.”
CWT layoff rumors have been circulating for quite some time (and were mentioned in Crain’s New York Business back in December). Before the holiday break, we asked the firm if it had any comment on the gossip. A CWT spokesperson told us: “Cadwalader does not respond to speculation concerning staff or operations.”
We’ve reached out to them for comment on these latest rumors, but we haven’t heard back from them. We assume their previous policy of not responding to rumors about internal operations remains in effect.
If you have any information to share, please email us. Thanks.
UPDATE: Cadwalader has confirmed to us that it is laying off 35 lawyers. We’ve just put up a new post with the firm’s official statement. Please comment in the new thread; we are closing this one. Thanks.
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Comments
First . . . out the door. Show me my money!
The only comment CWT will make is when it badmouths the fired associates to the legal press after terminating them.
I guarantee they show another year of massive PPP growth too. God forbid there is less than 5% growth on their $3mm PPP, time for heads to roll.
Their associates not being fired still don't know bonus numbers.
The firm is an absolute hellhole. I would love to hear from their valiant defenders telling everyone how great the place is, or how its detractors aren't good enough for a firm like CWT, anytime someone raises the facts about that disgusting sweatshop of a snakepit.
News like this always make me laugh at those thinking salaries are moving up.
What's the difference between Star Magazine and ATL?
You have to pay money to read Star.
I laugh at 10:20. CWT had massive layoffs in 1999 during the height of the last boom because one group was slow. They are not reflective of the market.
Long live my new law firm paradigm!
Go Vols! Rocky Top!
Maybe a dumb question, but do layoffs usually affect the number of summer associates that a firm gives offers to? Or would a firm laying off associates still be expected to give offers to virtually all of its summer associates?
Law Blog is reporting that CWT is laying off 35 lawyers.
10:22-Get you head out of the sand. The country is tetering on a recession. Corporate budgets are being scrutinized and squeezed. Fees paid to law firms are not immune from this. Less fees mean less PPP mean no raises for associates. Be happy you have a high paying job.
Bonuses have been always been announced by dept chairs or letters, not Mitch and Patti. Anyone who believes they are receiving their bonus announcement is like one of those fugitives summoned to the courthouse to pick up the speedboat they won in a raffle they didn't buy a ticket for.
There are no speedboats on 39 & 40.
The better question is why would anyone summer at CWT in the first place? If someone is dense enough to bury their head in the sand and go there despite the bad press they deserve a no offer at the end of the summer.
Law Blog certainly seems to have the inside scoop on this one. The ax has fallen.
10:26 you realize PPP doubled citywide during the last slowdown right? A well run law firm is recssion proof.
Be quiet 10:26---As long as we don't speak about the thing which we do not speak, it will not happen. There's no recession, there's no recession, there's no recession....
CWT- The Future of Biglaw
A core of equitized rainmakers surrounded by 12x their number of interchangeable and ever -expanding/contracting TTT service drones.
(kills self)
I laugh at 10:21.
10:29: Oooooooo. So cruel.
35 heads....
Nice work Lat.