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Nationwide Layoff Watch: Sonnenschein Nath & Rosenthal 'Separates' 37 Lawyers, 87 Staff

Sonnenschein Nath Rosenthal Above the Law blog.jpgAnother leading law firm has announced lawyer and staff layoffs. Elliott Portnoy, chairman of Sonnenschein Nath & Rosenthal, has confirmed to ATL the personnel changes that were announced to Sonnenschein lawyers and staff earlier today.

"We separated 75 staff and 49 timekeepers," said Mr. Portnoy, reached by telephone. "Of the 75 staff, 41 are secretaries are 34 are other support staff. Of the 49 timekeepers, 37 are lawyers, and 12 are non-lawyer timekeepers such as paralegals."

(To put the numbers a different way, the firm laid off 37 lawyers and 87 staff, if the 12 non-lawyer timekeepers are added to the 75 other staff members).

Most but not all of the affected lawyers are associates. According to Mr. Portnoy, of the 37 attorneys, six are partners, four are of counsel, and 27 are associates. The affected associates range from first-year to senior associates, with the reductions "spread pretty widely across the seniority ranges, from junior to senior."

The separations were also spread across practice groups and offices. "Real estate and litigation were the practices most directly affected," said Mr. Portnoy. "They're two of the firm's largest practices, so numerically this is not surprising."

More details, after the jump.

The vast majority of the directly affected individuals were notified last week. On Friday afternoon, after the laid-off individuals learned their fates, Elliott Portnoy issued a firm-wide voice mail, announcing implementation of a reduction in force. That voicemail did not provide specifics; it merely notified people of the change, and asked people to be understanding towards and supportive of their affected colleagues.

Today Mr. Portnoy held a series of briefings about the changes with Sonnenschein lawyers and staff: partners, counsel, senior managing directors, staff members, associates, and summer associates. The last of these briefings, with summer associates, concluded around 7 p.m.

"I walked all of our people through what we have been seeing in the industry generally," said Mr. Portnoy. "Not surprisingly, given the way in which our clients have been directly affected by the economic downturn, there have been changes in their legal needs in a particular set of practice areas."

"I talked to our people about steps that have been taken by firms that we compete with for clients and talent," he explained. "Some have done it openly and transparently, and some have not. We were not going to attempt to do this [reduction in force] below the radar. We were going to do this as openly and transparently as we could. We would not attempt to pass this off as performance-based."

(We commend Sonnenschein for its candor. As we have chronicled in these pages, many firms are taking similar steps to reduce costs and payrolls, but without owning up to what they're really doing.)

"In litigation and real estate and a handful of smaller practice groups, we concluded we had too many talented people for the level of work expected," said Mr. Portnoy, in explaining what prompted the layoffs. The separations were made to "align our workforce with our projected client needs. Together these factors drove the decisions that we made."

The firm did attempt to reduce expenses without reducing its payroll. For example, as previously reported, the firm shortened its summer program. "But even with the savings we achieved, we concluded that our infrastructure was too large for the number of lawyers we presently have," said Mr. Portnoy.

He debunked the rumor that the cuts were made due to a planned merger with another firm. "There is no imminent merger," he said. "We are not in active merger negotiations."

Are further reductions in force on the way? Hopefully not.

"We made very clear today that based on all the information available to us, we fully expect this to be the only set of reductions in force we're required to make in 2008," said Mr. Portnoy. "That said, it's obviously impossible to predict the future. But based on everything we know now, we believe the separation of 37 lawyers from the firm accomplishes the objectives we need to accomplish."

How will summer associates be affected? "Not at all," said Mr. Portnoy. "Our summer associates' jobs are absolutely secure. We fully expect to make offers to summers in the ordinary course."

And what about the laid-off individuals, whom Mr. Portnoy collectively praised as a talented group?

"We will do everything we can to help the people we have separated, to give them as much support and compassion as we are able to provide," said Mr. Portnoy. He added that the firm is working with headhunters and search firms, its alumni network, and its clients, to help the affected individuals find new opportunities.

Comments
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1 Posted by guest | Permalink Tuesday, May 27, 2008 7:31 PM

FIRST to say I'm scared my job will be gone before I start (this fall).

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2 Posted by guest | Permalink Tuesday, May 27, 2008 7:33 PM

first!!

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3 Posted by guest | Permalink Tuesday, May 27, 2008 7:35 PM

we "separated?" Sounds like they got decapitated.

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4 Posted by guest | Permalink Tuesday, May 27, 2008 7:35 PM

TTT

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5 Posted by guest | Permalink Tuesday, May 27, 2008 7:40 PM

any news on severance packages?

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6 Posted by guest | Permalink Tuesday, May 27, 2008 7:40 PM

Way to break the story, David!

But this is really sad news. Maybe you could throw up a pic of Kash to cheer us up?

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7 Posted by guest | Permalink Tuesday, May 27, 2008 7:43 PM

So by "separated," he just means that the staff and the "timekeepers" now work in different parts of the office, right?

Or by "separated," does he actually mean FIRED, and by "timekeepers," does he actually mean LAWYERS and PARALEGALS?

I hate attorney doublespeak.

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8 Posted by guest | Permalink Tuesday, May 27, 2008 7:47 PM

Now that's a layoff.

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9 Posted by guest | Permalink Tuesday, May 27, 2008 7:48 PM

Who cares about Sonnenshein? Isn't that the firm that all AU grads wanting to get into "big law" summer at?

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10 Posted by guest | Permalink Tuesday, May 27, 2008 7:48 PM

Not to be redundant, but "separated"?

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11 Posted by guest | Permalink Tuesday, May 27, 2008 7:50 PM

Law firms have started laying off students at AU before they have even sent in their resumes.

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12 Posted by guest | Permalink Tuesday, May 27, 2008 7:52 PM

to add to the chorus, "separated"? someones been going to PR school

13 Posted by Pacific Reporter | Permalink Tuesday, May 27, 2008 7:56 PM

TTT in decline. But at least they're honest about it.

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14 Posted by guest | Permalink Tuesday, May 27, 2008 7:56 PM

http://bp0.blogger.com/_0Toi8NqJtIQ/SDX2HlRfVJI/AAAAAAAAAGE/XFwtcKQi4pQ/s1600-h/ATL.jpg

This'll cheer you up. Courtesy of Kash.

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15 Posted by guest | Permalink Tuesday, May 27, 2008 7:59 PM

what a joke. I wish L2L was here. though in today's economy it would be Cornell2L.

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16 Posted by guest | Permalink Tuesday, May 27, 2008 8:02 PM

Not entirely surprising. Sonnenschein, on a national basis, has one of the larger real estate practices. Bound to go badly in this market. As for the litigation downsizing, that is kind of strange. A fair number of shops are ramping up their litigation practices. Most are at least keeping their people busy.

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17 Posted by guest | Permalink Tuesday, May 27, 2008 8:03 PM

Use of the word "separated" is common in employment law. A separation from employment can be a termination, lay-off, or voluntary resignation. It's more PC to use the word separated than lay-off.

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18 Posted by jsk91765 | Permalink Tuesday, May 27, 2008 8:04 PM

"We were not going to attempt to do [this reduction in force] below the radar. We were going to do this as openly and transparently as we could. We would not attempt to pass this off as performance-based."

How refreshing....

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19 Posted by guest | Permalink Tuesday, May 27, 2008 8:05 PM

And I thought I was 'safe' until the summers depart.....

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20 Posted by guest | Permalink Tuesday, May 27, 2008 8:05 PM

should it now be "NATIONWIDE SEPARATION WATCH"??

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21 Posted by guest | Permalink Tuesday, May 27, 2008 8:07 PM

refreshing? yet use the word separated. so each of the 37 sending out their resumes now gets slapped with FIRED even though they didn't pull a PaulHastings, took the $ and promised not to sue/badmouth/tell truth, etc. wonderful

will everyone stop saying how refreshing this crap is.

Refreshing would be if they kept the 37 lawyers and the PPP went down Oh My God 5-10%.

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22 Posted by guest | Permalink Tuesday, May 27, 2008 8:10 PM

Does this include the people they already screwed in Charlotte or not?
I'm guessing no.

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23 Posted by guest | Permalink Tuesday, May 27, 2008 8:12 PM

Use of the word "separated" here is comical and just ridiculous. These people were fired. Separated is pure PR crap. What exactly were they separated from? Makes it sound like they are being kept in apart from the general population in a special place where no one can have contact with them.

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24 Posted by guest | Permalink Tuesday, May 27, 2008 8:13 PM

Job>Separated>Rescinded Offer

Though, Sonnenschein=TTT

Q.E.D.

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25 Posted by guest | Permalink Tuesday, May 27, 2008 8:14 PM

Interesting:

"He debunked the rumor that the cuts were made due to a merger with another firm. 'There is no imminent merger,' he said. 'We are not in active merger negotiations.'"

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26 Posted by guest | Permalink Tuesday, May 27, 2008 8:16 PM

I guarantee that most of the AMLAW 200 firms are doing lay-offs. It's just that most are too wuss to reveal it. They are doing stealth lay-off by giving people poor performance evaluations or closely monitoring their billables. In a way Sonneshein and Thelen and other firms that have disclosed their lay-offs are stupid. Sure, they are more moral, but they're stupid. They won't be able recruit as easily as before. They could just have done it stealth and it would have been all good.

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27 Posted by guest | Permalink Tuesday, May 27, 2008 8:17 PM

"We fully expect to make offers to summers in the ordinary course." Save your stamps

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28 Posted by guest | Permalink Tuesday, May 27, 2008 8:17 PM

@8:05
Sonnenschein is so TTT and the economy so shiTTTy that they don't care about waiting until the summers leave. Summers now know to make good eye contact when going down on the partners under the table at $40 lunches.

Not to say that they won't fire more people in August. Or that anyone at Sonny should expect a bonus other than a gift card to T.G.I. Friday's.

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29 Posted by guest | Permalink Tuesday, May 27, 2008 8:23 PM

It is much better to search for a job as a layoff victim than it is as someone who was fired for poor performance.

Presumably the Sonnenschein refugees will leave with support from the firm and positive references.

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30 Posted by guest | Permalink Tuesday, May 27, 2008 8:23 PM

7:56(2), nice work. Just as hot up close as I'd imagined. Good shot of Lat, too.


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31 Posted by guest | Permalink Tuesday, May 27, 2008 8:25 PM

All of the laid off lawyers were UDC and AU staff attorneys.

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32 Posted by guest | Permalink Tuesday, May 27, 2008 8:28 PM

8:25 -- is UDC more prestigious than AU? Is each accreditated by the American Bar Association?

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33 Posted by guest | Permalink Tuesday, May 27, 2008 8:28 PM

Breaking news, Lat! AU Law is merging with UDC Law. The resulting organization will be known as AUDC.

This is going to be bigger than the UPennState merger last year!!

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34 Posted by guest | Permalink Tuesday, May 27, 2008 8:31 PM

@8:23
support from the firm? What the hell is that?
"Hey, we'll ask our friends around for a job for you?"
No
"Hey, we'll give you a list of recruiters - Lateral Link, Evan Jowers..."


Positive References?
"No, we couldn't use the person, but we're sure you'll love him or her"
Nope. Hell, references in today's environment of SulCrom and A&O and PH are never used since they can only get a law firm sued.


Support from the firm would be "Hey, you billed 2600 hours last year at $400 and hour. So even if you bill only 0 hours this year, we're still ahead of the game. Just relax, do some professional reading, build client contact, and try to re-learn your kids names that you forgot when you were so busy the last 3 years."

I'll pass on TTT "support" thanks but no thanks

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35 Posted by guest | Permalink Tuesday, May 27, 2008 8:36 PM

'six are partners, four are of counsel'

HAHAHAH

looks like the brass ring was made of brass

sucks to even be a (former) partner at Sonnenschein

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36 Posted by guest | Permalink Tuesday, May 27, 2008 8:41 PM

"There is no imminent merger," he said. "We are not in active merger negotiations."

active. imminent. haha
legalspeak for "The other firms we begged to save us took a look at our boooks and ran away laughing. we are still screaming for them to come back and lets us lovethemlongtime. please."

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37 Posted by guest | Permalink Tuesday, May 27, 2008 8:43 PM

8:36 - Good observation. At least the partnership is sharing the pain (although not evenly).

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38 Posted by guest | Permalink Tuesday, May 27, 2008 9:04 PM

God, this sucks for the laidof...I mean "separated" folks. Best wishes to them.

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39 Posted by guest | Permalink Tuesday, May 27, 2008 9:06 PM

Guess it's not all sonnenschein and lollipops today.

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40 Posted by guest | Permalink Tuesday, May 27, 2008 9:20 PM

Note the way they (publicly) group partners, associates and paralegals into a class of "timekeepers." Those Sonnenschein lawyers must feel real special right now.

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41 Posted by guest | Permalink Tuesday, May 27, 2008 9:32 PM

"even though they didn't pull a PaulHastings, took the $ and promised not to sue/badmouth/tell truth, etc."

Don't fool yourself: there is no doubt in my mind that The Separated will need to sign a waiver of claims to receive any severance payment, which is standard when any non-contractual severance is offered. My bet is that the agreement would also include a nondisparagement clause and/or a confidentiality provision, too.

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42 Posted by guest | Permalink Tuesday, May 27, 2008 9:42 PM

They handled the layoffs with class. My hats off to Sonnenchein.

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43 Posted by guest | Permalink Tuesday, May 27, 2008 9:42 PM

You NY to $160 types really screwed yourselves. If associate salaries were not so high, the pain could be more evenly shared. But now, if you're not billing, you're instantly cut. So much for the good old days.

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44 Posted by guest | Permalink Tuesday, May 27, 2008 9:43 PM

We need a Fired Sonnenschein Partner to go along with our Fired Skadden Partner.

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45 Posted by guest | Permalink Tuesday, May 27, 2008 9:46 PM

Who or what is the Fired Skadden Partner?

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46 Posted by guest | Permalink Tuesday, May 27, 2008 9:48 PM

CWT has been laying off in droves for months now "under the radar." Lat, you should be digging into it, what gives? CWT also isn't hiring in their alleged "diversification" groups since Link was ousted. They're tightening their belts big time and have not found the magic elixir to keep their $3M PPP. The only way they have any hope of even keeping their PPP above $2M is to lay off any associate not billing 2000 hours or any partner not generating $5M in billings. You'll hear a lot more in the months to come.

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47 Posted by guest | Permalink Tuesday, May 27, 2008 9:50 PM

i am very confused here...i thought firms were having summer classes up to 33% of total headcount because business was booming...i must be misinformed....

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48 Posted by guest | Permalink Tuesday, May 27, 2008 10:06 PM

932
you can't read. read the original post again and your post was moronic.

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49 Posted by guest | Permalink Tuesday, May 27, 2008 10:09 PM

what a rancid toilet

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50 Posted by guest | Permalink Tuesday, May 27, 2008 10:14 PM

THE TIME HAS COME FOR A LIST OF SHAME

Firm, official attorney layoffs, unofficial attorney layoffs, staff

Sonnenschein Nath & Rosenthal, 37, unknown, 87
Holland & Knight, none, unknown, 70
Bingham McCutchen, none, unknown, 17
Hunton & Williams, none, several, unknown
Paul Hastings, none, several, unknown
Sutherland Asbill & Brennan, 15, several, unknown
Thelen Reid Brown Raysman & Steiner, 26, several, 85


PLEASE ADD. YOU KNOW WHERE YOU ARE AND WHAT YOU HAVE HEARD

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51 Posted by guest | Permalink Tuesday, May 27, 2008 10:17 PM

Don't forget Clifford Chance, Thacher Proffit, McKee Nelson and Sidley.

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52 Posted by guest | Permalink Tuesday, May 27, 2008 10:18 PM

And don't forget DecherTTT, MoFo and Heller.

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53 Posted by guest | Permalink Tuesday, May 27, 2008 10:22 PM

THE LIST OF SHAME

Firm, official attorney layoffs, unofficial attorney layoffs, staff

Sonnenschein Nath & Rosenthal, 37, unknown, 87
Holland & Knight, none, unknown, 70
Bingham McCutchen, none, unknown, 17
Hunton & Williams, none, several, unknown
Paul Hastings, none, several, unknown
Sutherland Asbill & Brennan, 15, several, unknown
Thelen Reid Brown Raysman & Steiner, 26, several, 85
Clifford Chance, 6, ,
Thacher Proffit, ~40, ,
McKee Nelson, ~35, ,
Sidley Austin, ~20, ,
Dechert, ~40, ,
MoFo, ~25, ,
Heller, ~25, ,

PLEASE ADD. YOU KNOW WHERE YOU ARE AND WHAT YOU HAVE HEARD

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54 Posted by guest | Permalink Tuesday, May 27, 2008 10:24 PM

CWT was cutting people too.

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55 Posted by guest | Permalink Tuesday, May 27, 2008 10:31 PM

I summered at this firm (though didn't take the offer). I wonder if anyone I liked got axed. Hope not.

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56 Posted by guest | Permalink Tuesday, May 27, 2008 10:40 PM

Schulte has laid off a bunch of attorneys too.

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57 Posted by guest | Permalink Tuesday, May 27, 2008 10:43 PM

What offices were hit at Sonnenschein? Did the Kansas City office have any atty layoffs? Thanks.

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58 Posted by guest | Permalink Tuesday, May 27, 2008 10:55 PM

CWT will likely be half its former size by the end of the year. That's a lot of attorneys on the job market. The only prudent thing to do is lower associate salaries and billable rates to use this excess capacity.

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59 Posted by guest | Permalink Tuesday, May 27, 2008 11:12 PM

Sidley? Really? I'm a Sidley 4th year and I haven't heard any buzz about layoffs (attorney or staff)

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60 Posted by guest | Permalink Tuesday, May 27, 2008 11:16 PM

THE LIST OF SHAME

Firm, official attorney layoffs, unofficial attorney layoffs, staff

Sonnenschein Nath & Rosenthal, 37, unknown, 87
Holland & Knight, none, unknown, 70
Bingham McCutchen, none, unknown, 17
Hunton & Williams, none, several, unknown
Paul Hastings, none, several, unknown
Sutherland Asbill & Brennan, 15, several, unknown
Thelen Reid Brown Raysman & Steiner, 26, several, 85
Clifford Chance, 6, ,
Thacher Proffit, ~40, ,
McKee Nelson, ~35, ,
Sidley Austin, ~20, ,
Dechert, ~40, ,
MoFo, ~25, ,
Heller, ~25, ,
Shulte, none, several,
CWT, ~38, several

PLEASE ADD. YOU KNOW WHERE YOU ARE AND WHAT YOU HAVE HEARD

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61 Posted by guest | Permalink Tuesday, May 27, 2008 11:18 PM

Lat, any way you can confirm the layoff numbers for the list of firms in the above post? I'd hate to see these toilets get away with sweeping their layoffs under the rug.

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62 Posted by guest | Permalink Tuesday, May 27, 2008 11:46 PM

Paul Hastings = At least 30-40 associates have been 'quietly' laid off the past 8 months. More coming. DC and ATL offices are next to be hit and hit hard (they have already been effected to some degree, but more are in the works.)

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63 Posted by guest | Permalink Tuesday, May 27, 2008 11:54 PM

CWT Cap Markets associate here and from what I gather there have been few if any "unofficial" layoffs unless you count the few fuckups who get laid off every year for poor performance regardless of market conditions.

That being said, I am wondering when CWT will lay off more associates. Rumor has it that certain partners had "promised" that there would be no more for the rest of the year. On the other hand, we were outright told by Link that the firm considers it a top priority to keep PPP as high as possible, in order to keep the firm competitive for partner moves. Given this priority, how long can the partners afford to have two dozen or so associates and special counsel billing no more than 100 hours per month since January, and for some allegedly as low as 20?

Also, a general question: will any firm be dumb enough to lay associates off while the summer program is up and running? Sonnenschein is apparently dumb enough to have laid off associates just before their program starts. Or, perhaps this move is intentional, to signal to summers right from the start that they should plan to look elsewhere for permanent employment?

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64 Posted by guest | Permalink Wednesday, May 28, 2008 12:15 AM

"what a joke. I wish L2L was here. though in today's economy it would be Cornell2L."

Not a bad idea for a new shtick. IN THIS ECONOMY.

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65 Posted by guest | Permalink Wednesday, May 28, 2008 12:33 AM

Schulte is definetly getting crushed but are keeping it under wraps.

Also, AU students are getting laid off in the middle of their 2L evidence classes by firms they didn't even apply to.

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66 Posted by guest | Permalink Wednesday, May 28, 2008 12:47 AM

@ 7:56:

Is that SEN? If so, we need to have more pictures of SEN on the site. And Kash needs to learn what camera flashes do to shirts.

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67 Posted by guest | Permalink Wednesday, May 28, 2008 12:56 AM

is that really true about MoFo and Heller? which offices?

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68 Posted by CornelL2L | Permalink Wednesday, May 28, 2008 1:01 AM

Ask and you shall receive.

Except a job. No way can you get one of those in this economy.

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69 Posted by guest | Permalink Wednesday, May 28, 2008 1:08 AM

What's the basis for claiming Sidley has laid off any employees?

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70 Posted by guest | Permalink Wednesday, May 28, 2008 1:32 AM

If I ever lay off associates, I'm going to completely dismember them, not just separate them.

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71 Posted by guest | Permalink Wednesday, May 28, 2008 1:41 AM


CornelL2L, you need a shot of one of those cliched "Ithaca is Gorges" t-shirts for your picture.


The basis for Sidley's layoffs is the cap mkts people they canned in in Chicago and NY. And don't forget Winston's layoffs.

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72 Posted by guest | Permalink Wednesday, May 28, 2008 1:43 AM

SEN's lookin' good now, but Kash has the body to be a great MILF someday.

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73 Posted by guest | Permalink Wednesday, May 28, 2008 4:03 AM

For those who added to the list above, please provide references for the MoFo, Heller, or Sidley layoffs. Those are to be completely unsubstantiated. And what or who is Shute and why is it on the list if it had zero layoffs? Idiots.

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74 Posted by guest | Permalink Wednesday, May 28, 2008 6:58 AM

It's an open secret that Dewey & LeBoeuf is doing stealth lay-offs too.

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75 Posted by guest | Permalink Wednesday, May 28, 2008 7:30 AM

This is a mixed story at best. Students of SNR will recall the long piece in the American Lawyer earlier this year when Portnoy announced that he was going to double the size and double the profitability of the firm in five years. That tall order has many costs, not the least of which is paring the ranks in slow areas and paring the ranks of associates not likely to make partner and partners with insubstantial books of business. SNR did this before - twice actually - during the early 1990's and early in this decade - sloughing off partners but denied that it was happening. Expect to see a more aggressive extensive Round II early in 2009. To fund their lateral expansioin campaign witho

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76 Posted by guest | Permalink Wednesday, May 28, 2008 7:30 AM

This is a mixed story at best. Students of SNR will recall the long piece in the American Lawyer earlier this year when Portnoy announced that he was going to double the size and double the profitability of the firm in five years. That tall order has many costs, not the least of which is paring the ranks in slow areas and paring the ranks of associates not likely to make partner and partners with insubstantial books of business. SNR did this before - twice actually - during the early 1990's and early in this decade - sloughing off partners but denied that it was happening. Expect to see a more aggressive extensive Round II early in 2009. To fund their lateral expansioin campaign witho

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77 Posted by guest | Permalink Wednesday, May 28, 2008 7:32 AM

Expect Round II to include 50-75 lawyers in the 1Q of 2009. Remember you read it here first.

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78 Posted by guest | Permalink Wednesday, May 28, 2008 7:59 AM

Can anyone add light to why firms like Sonnenschien supposedly fire AU students before others? I am starting at AU law school in a few months and am wondering why any employer would systematically fire its attorneys just because they happened to graduate from one school (which, from what I've heard, is really good at educating future lawyers).

Thank you for your responses.

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79 Posted by guest | Permalink Wednesday, May 28, 2008 8:24 AM

Dear 7:59 AM (Future AU Law Student):

Congratulations on your acceptance to American University's WCL. Its a great school and I am sure that you will find your time there as rewarding as I found mine. I want to mention to you a few things.

1. Firms are not firing AU grads in droves. Once you get your foot in the door at a firm, they will not look at you any different from a graduate from UCLA, Harvard, or Hofstra. Meaning, if you can get your foot in the door (which an AU student/grad easily can do) then you can make it at the firm.

2. Many of the posts on this site that speak poorly of AU are jokes. Anyone practicing in the DC area will agree that, behind UVA, AU is probably the best school at preparing students to work at "big law". And while I personally believe that AU produces much better lawyers than Georgetown, I think the consensus is that the two are equals. UVA (best), AU / GULC (2nd), GW (3rd).

3. AU has one of the finest law reviews in the nation. Work hard your first year, and try and become a member.

Best of luck at AU !!!

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80 Posted by guest | Permalink Wednesday, May 28, 2008 8:28 AM

I think that AU has an affirmative action policy that requires it to admit a disproportionate number of retards.

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81 Posted by guest | Permalink Wednesday, May 28, 2008 8:31 AM

Dear 7:59 AM Future AU Law Student,

We're going to have to let you go.

Sincerely,
Biglaw

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82 Posted by guest | Permalink Wednesday, May 28, 2008 8:46 AM

7:59AM, for the love of God stop making AU grads look even more stupid. Time to flush my degree if this keeps up...

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83 Posted by guest | Permalink Wednesday, May 28, 2008 8:46 AM

I'm an associate at Heller, and I haven't heard anything about layoffs.

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84 Posted by guest | Permalink Wednesday, May 28, 2008 8:56 AM

"timekeepers"? way to kick a person while they are down

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85 Posted by guest | Permalink Wednesday, May 28, 2008 8:57 AM

8:46 -- what did 7:49 write (as a rising 1L) that makes "AU grads look even more stupid" (than your post, presumably from an AU grad)?

I think you are doing a fine job of making "AU grads look even more stupid".

GULC, 2005

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86 Posted by guest | Permalink Wednesday, May 28, 2008 8:59 AM

Why so much hating against AU? I always thought AU Law School was a fine institution.

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87 Posted by guest | Permalink Wednesday, May 28, 2008 9:01 AM

American Universtiy's WCL isn't as bad as say Thomas A. Cooley, CUNY, or Touro. It is, by far and in my opinion, the least prestigious school in DC (yes-- even behind UDC).

Sincerely,
The Final Word

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88 Posted by guest | Permalink Wednesday, May 28, 2008 9:04 AM

Rammstein die Sonne scheint.

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89 Posted by guest | Permalink Wednesday, May 28, 2008 9:05 AM

8:24 = AU dean

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90 Posted by guest | Permalink Wednesday, May 28, 2008 9:06 AM

where is roger lou when he is so need to defending good names of america's university?

91 Posted by Pacific Reporter | Permalink Wednesday, May 28, 2008 9:09 AM

7:56(2), you win. It's nice to know that Kash is into wgwag.

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92 Posted by guest | Permalink Wednesday, May 28, 2008 9:10 AM

8:24 -

"Anyone practicing in the DC area will agree that, behind UVA, AU is probably the best school at preparing students to work at "big law". And while I personally believe that AU produces much better lawyers than Georgetown, I think the consensus is that the two are equals. UVA (best), AU / GULC (2nd), GW (3rd)."

I disagree. If you count UVA as a "DC-area school," then I believe it is roughly on par with (or slightly better than) GULC. Then would be GW. So UVA / GULC / GW. Then, I think you cross the river and would add University of Maryland's law school and William and Mary. Then perhaps the others... Catholic, Howard, UDC, AU, Baltimore, George Mason, etc.

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93 Posted by guest | Permalink Wednesday, May 28, 2008 9:14 AM

7:59am -- you seem to be a bit dilusional thinking AU is on par with GW or G-town. Is AU even in the 1st tier?? Also absent from your stellar analysis of DC schools is George Mason which last time I checked was ranked ALOT higher than AU. Even as a GMU grad, I will be the first to admit that my alma mater lacks the prestige of g-town and to a lesser degree GW -- but it sure beats the hell out of the rest of the schools in the area. And the icing on the cake - I will be actually have a job in the fall and pay a fraction of the loans of you AU grads. Keep drinking that koolaid...

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94 Posted by guest | Permalink Wednesday, May 28, 2008 9:17 AM

is there any data on the attorney headcount growth at the amlaw 100 was over the past few years?

after hiring the b students at third tier toilets (anything ranked below say top 6-8 USNEWs is TTT in the real world) for the past few years, isn't this a mere right sizing of the large firms?

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95 Posted by guest | Permalink Wednesday, May 28, 2008 9:18 AM

They are a very strangely organized firm. According to NALP in their major offices there are more partners than associates. see following for partner/associates #'s:

Chicago-119/70
New York76/45
Kansas City-30/27
LA-34/17
St. Louis-20/20
DC-54/28
San Fran-39/26

No wonder they are in deep trouble


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96 Posted by guest | Permalink Wednesday, May 28, 2008 9:28 AM

9:18 - the reverse leverage is a strong indicator of the problem the firm faces. Portnoy has basically promised his partners that they'll have numbers like the top of the AmLaw 100 - to get there they have to have either extraordinaary premium billing (this isn't Wachtell of the Windty City - ain't gonna happen) a rolls royce green goods practice (which is not something they have ever had in New York) or highly leveraged bet the company complex litigation - which is going through tough times even at firms far better known for courtroom prowess than SNR. So by firing staff and associates they'll be able to keep the numbers flat for 08 - if they're really really lucky. A lot of the firm's headcount is in mid-market towns where they will never be able to charge rates that allow the firm to make enormous progress on profits per partner. In New York they are one of 200 plus national firms with a Big Apple presence and they are not going to be able to become a baby Simpson Cahill or S&C - just ain't gonna happen.

There is no way Portnoy can accomplish his agenda over the next 5-10 years unless he fires two thirds of the existing partners and calls that his stairway to heaven or his pathyway to prosperity and leverage. But that type of group execution won't go down well with stolid old school SNR partners.

Prediction: SNR won't double in size or profitability. They will stumble along firing more associates and partners - they'll be what they were - a comfortable mid tier place - and in 2010-2011 they will replace their chairman and head in yet another "new direction."

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97 Posted by guest | Permalink Wednesday, May 28, 2008 9:35 AM

I will tell you one thing. Congrats to this firm for actually coming clean about what they were doing. They should be commended. Other firms try to get away with stealth layoffs. They are the ones who should be excoriated and embarrassed.

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98 Posted by guest | Permalink Wednesday, May 28, 2008 9:38 AM

So is AU a good school or not?

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99 Posted by guest | Permalink Wednesday, May 28, 2008 9:39 AM

9:38 AM: Or not.

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100 Posted by guest | Permalink Wednesday, May 28, 2008 9:41 AM

9:23 -- Could not agree more with your comments.

Will they start stripping equity status from partners, or are they already a 2-tier firm?

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101 Posted by guest | Permalink Wednesday, May 28, 2008 9:48 AM

9:41,

I'm not sure what your post has to do with AU, but I will try and answer. AU law students do not have "equity status" (they have lots of debt, though) and AU is not ranked in the "2-tier" of schools, it is in tier 3.

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102 Posted by guest | Permalink Wednesday, May 28, 2008 9:50 AM

9:48 -- I think the term you are looking for is "TTT"

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103 Posted by guest | Permalink Wednesday, May 28, 2008 10:01 AM

thanks for the pic 7:56(2): SEN looks great too.

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104 Posted by guest | Permalink Wednesday, May 28, 2008 10:03 AM

Can anyone confirm layoff / reassignment rumors at A&B in CLT?

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105 Posted by guest | Permalink Wednesday, May 28, 2008 10:07 AM

Why is there not more outrage that first years are being included in layoffs? Firms should not be firing a first year after six months because of economic conditions. The firm has an obligation to give them a fair shot.

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106 Posted by guest | Permalink Wednesday, May 28, 2008 10:08 AM

I know of multiple people in multiple departments at Schulte that have been told their time is up and to find another job. Hard to say how many firm wide because the firm is doing it quietly. If I had to make an educated guess, I would say about 20 over the last 6 months (but that is just a guess - could be more; could be less).

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107 Posted by guest | Permalink Wednesday, May 28, 2008 10:15 AM

No wonder they canceled my interview for a paralegal position like 3 three weeks ago.

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108 Posted by guest | Permalink Wednesday, May 28, 2008 10:15 AM

Just reported -- Massive separations occurring at AU.

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109 Posted by guest | Permalink Wednesday, May 28, 2008 10:23 AM

I want a t-shirt that reads"I GOT LAID (off) AT BIGLAW"

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110 Posted by guest | Permalink Wednesday, May 28, 2008 10:26 AM

I'd buy that shit 10:23 - hilarious!

In other news SNT joins the ranks of the TTTs populated by the likes of OMM, CWT, McK. Once the economy picks up, these firms are going to get absolutely slaughtered in recruiting and will be able to recruit only the crappiest of students. Good luck!

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111 Posted by guest | Permalink Wednesday, May 28, 2008 10:35 AM

Can someone explain to me why a firm would fire its "talented" associates but give all their unproven summers offers?

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112 Posted by guest | Permalink Wednesday, May 28, 2008 10:43 AM

Regarding Schulte, there have been a few senior and mid-level people let go but not in the departments you might expect. Thus it's hard to tell if they are related to the downturn or if they're just normal squeeze-outs that happen all the time at every firm.

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113 Posted by guest | Permalink Wednesday, May 28, 2008 10:44 AM

10:35 am: Because firms are weird.

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114 Posted by guest | Permalink Wednesday, May 28, 2008 10:55 AM

8:24, I have worked at 3 biglaw firms in DC and have yet to meet an AU associate at any of those firms. I have, however, had the opportunity to work with plenty of good GULC, GW, and UVA grads. I've never heard that AU produces better lawyers than schools like GULC or GW, and my experience at biglaw (and the preference for other schools over AU) tells me there's a reason.

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115 Posted by guest | Permalink Wednesday, May 28, 2008 11:00 AM

Sonnenschein's Kansas City office laid off 2 attorneys and 7 assistants.

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116 Posted by guest | Permalink Wednesday, May 28, 2008 11:01 AM

A little over a year ago Sonnenschein publicly announced that they intended to almost double PPP from the mid/upper six figures to the low seven figures. This economic downturn is simply a good excuse to continue the housecleaning necessary to make that PPP jump, just on a large scale. This has been going on at Sonnenschein for a while, in smaller numbers of course up to this point.

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117 Posted by guest | Permalink Wednesday, May 28, 2008 11:09 AM

The partners that overcut associates now will feel the pain later.

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118 Posted by guest | Permalink Wednesday, May 28, 2008 11:13 AM

Some good people are being laid off at Sonnenschein. Let's hope the partners feel the pain later.

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119 Posted by guest | Permalink Wednesday, May 28, 2008 11:18 AM

7:59 & 8:24 - The only people who will ever tell you that AU is equivalent or better than UVA, GULC or GW are people who go to, went to, or are employed by AU. Everyone else - i.e., the entire rest of the world - knows that UVA is a top 10 school, GULC has been ranked in the top 20 for far more than a decade, and GW has been ranked consistently in the 20s. Contrast AU, which has gone from mid-70s (TTT) to barely in the top 50, which it has accomplished by gaming the employment stats part of the rankings, not through any actual improvement.

Bottom line is, it is fine, but it is not great. Period. You'd better finish in the top 5, maybe 10% of your class if you want a biglaw gig.

Here is the widely recognized pecking order of DC schools:

UVA> GULC> GW> WGWAG> AU> GMU/UMD> Catholic> Howard & UDC

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120 Posted by guest | Permalink Wednesday, May 28, 2008 11:24 AM

I would put GMU ahead of AU and way ahead of Maryland-- at least the GMU kids get jobs.

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121 Posted by guest | Permalink Wednesday, May 28, 2008 11:36 AM

AU is scientific for GOLD. Coincidence? I think not. Gold comes before silver, and certainly before Georgetown.

Do the math.

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122 Posted by guest | Permalink Wednesday, May 28, 2008 11:46 AM

You sad little people. Cravath would never hire you.

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123 Posted by guest | Permalink Wednesday, May 28, 2008 11:46 AM

The reality is if your highest ranked acceptance to law school is AU you should seriously consider whether it is worth the 100k+. Don't drink the koolaid and don't believe what career services tells you, actually go to firms websites and search by AU and see how many associates there are. In general, biglaw firms will have 0-6. Compare that to the much larger number of associates from GULC and/or GW. Unlike NY, DC firms don't do as good job hiring from the low ranked regional schools like AU, Catholic, MD, probably because they don't have to.

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124 Posted by guest | Permalink Wednesday, May 28, 2008 11:50 AM

Has anyone heard any news about GT and what might be happening, if anything, with "separations" and workload?

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125 Posted by guest | Permalink Wednesday, May 28, 2008 11:59 AM

11:24 - That is probably because you went there.

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126 Posted by guest | Permalink Wednesday, May 28, 2008 12:08 PM

8:41 & 43pm:
Sonnenschein has desperately sought mergers over the past 5 years
further
they have been de-equitizing /firing partners on the sly over the last few years

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127 Posted by guest | Permalink Wednesday, May 28, 2008 12:31 PM

8:24 am is retarded.
Why do AU grads get fired first?
A) crappy work product guaranteed
B) no prestige added to firm

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128 Posted by guest | Permalink Wednesday, May 28, 2008 12:42 PM

9:18: a rough 1:1 partner-associate ratio is not unusual for midwestern firms, even the bigger ones. Doesn't help the PPP any, that's for certain.

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129 Posted by guest | Permalink Wednesday, May 28, 2008 12:44 PM

I know that Jenner has been laying off attorneys, mostly women, over the past few months. Quitely, of course.

And what is with the AU bashing? Did all you people get one-upped by an AU grad and this is your petty revenge? It's not even clever. Move on to something else.

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130 Posted by guest | Permalink Wednesday, May 28, 2008 12:46 PM

9:41am:
The majority of Sonnenschein partners are now non-equitized. they have a large number of tiers for their equitized partners. so 11:01 is right, but it will only be a few select partners moving into the 7 figure range

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131 Posted by guest | Permalink Wednesday, May 28, 2008 12:48 PM

Pornoy seems like a horrible baffoon. Predictions on when this dufus will get canned, I mean, separated?

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132 Posted by guest | Permalink Wednesday, May 28, 2008 12:56 PM

Layoffs at AU to be announced later today. Professors at the school are telling students to not bother and explore other career fields.

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133 Posted by guest | Permalink Wednesday, May 28, 2008 1:08 PM

UDC > DC DMV > AU >= Death

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134 Posted by guest | Permalink Wednesday, May 28, 2008 1:22 PM

Portnoy is actually a pretty shrewd guy, as his goal is to increase PPP at any cost

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