Nationwide Layoff Watch: Is Today ‘Layoff Day’ at Cadwalader? (Redux)
If the title of this post sounds familiar to you, it should. We used it back in January, a few hours before major layoffs — amounting to about 35 attorneys — at Cadwalader, Wickersham & Taft.
In the months since then, we’ve heard all sorts of other rumors about Cadwalader. There have been whispers that the number of attorneys laid off last time may have been closer to 50 rather than 35. We’ve heard about possible staff layoffs. There has also been talk of quieter, smaller-scale reductions in attorney ranks at CWT — “strategic firings,” as one tipster put it. This source guessed that the firm has already shed around 100 attorneys since its peak.
But losing 100 lawyers, if true, may not have been enough. Word on the street is that Cadwalader is now bracing for another round of large-scale layoffs, which could be announced as early as today or tomorrow. In the words of one source, “Surprised you haven’t posted anything on Cadwalader. Major s**t going down…”
Here’s the most detailed account of several that we’ve received (after the jump):
[M]ore layoffs are imminent at Cadwalader…. Cuts are going to be deep as they did not cut that many before. And they didn’t learn from the last time — conference rooms are reserved for Thursday for an IT vendor for all day in NY. Conference rooms in DC are also reserved for all day and the office managing partner has a room reserved for late in the day (last time, there was a late in the day “rally the troops”) message.Work has been slow, and they have tons of capacity in capital markets, real estate, etc. Chris White has told the partners that who gets cut is his call this time since they didn’t cut enough last time…. So much for telling people there would only be one round of layoffs!
How deep? Different sources say:
“[A]fter the summers leave, the firm plans to lay off 100 lawyers (including partners). This will likely spell[] the end to the firm’s Charlotte office.”“Cadwalader is about to have mass layoffs of as many as 100 attorneys, ranging from special counsel down to the current first-year associate class. In addition, certain partners have already been stripped of their equity. Layoffs will occur right after the summer associate class leaves and before the new first years arrive.”
Which would be right about now, we believe. No official word from the firm yet — we’ve reached out to them for comment — but we’ll keep you posted
UPDATE: The layoffs have been confirmed by Cadwalader. See here.
Here’s a video ad that stands as a reminder of happier times at Cadwalader. Alas, these days the only metric by which the firm is “leading the industry” may be layoffs.
Cadwalader, Wickersham & Taft LLP video [YouTube]
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Yikes...
Lat, focus more on actual stuff like this, less on the crap that is ATL idol
I'm sure Lat can't wait to be rid of the peanut gallery (e.g., 8:54) that second guesses everything he does (or doesn't do) on ATL.
thanks bush! thanks republicans! great job on the economy as always....
Lat, focus more on actual stuff like ATL idol, less on the crap that is this
Lat,
You got scooped. WSJ Law blog was invited to CWT's offices and had the layoff's explained to him.
You can't blame the Republicans for the implosion of Cadwalader. Some firms are doing just fine.
Blame Bob Link and his misguided expansion plans.
great. too late to drop these guys from my oci list.
Just because CWT is on your OCI list doesn't mean that you have to go to the interview or accept the offer (if you even get one).
I'm wondering if any 2L's will accept a job there this year...
100-130 attorneys to be laid off. Was going to be on Thursday but will happen today. Most of capital markets. Some others in the usual groups. Summers supposedly will all get offers. Still bringing in next year's class as well.
I heard the same rumor that they could actually close down their Charlotte office. Anyone know if there's any truth to it?
A whole new level of TTT-dom. NO LAW STUDENT WITH ANY OPTIONS WHATSOEVER WILL EVER JOIN CWT - you heard it here first.
Severence through the end of the year? Not bad.
CWT always had a reputation as a sweat shop, Now it's the icredible shrinking sweat shop
Congrats, CWT. You just lowered the quality of summers you'll have for the next 5 years.
It's going to be pretty hard to do deals when you have morons working for you.
Well now that the precedent is set I am sure Seth and Greg will take it as the all clear to commence stealth layoffs at Paul Hastings.
While stressing repeatedly that the will not "set the market" in salaries and benefits, they love to "get out in front" of "market changes" and dump junior associates.
Well now that the precedent is set I am sure Seth and Greg will take it as the all clear to commence stealth layoffs at Paul Hastings.
While stressing repeatedly that the will not "set the market" in salaries and benefits, they love to "get out in front" of "market changes" and dump junior associates.
Great job, Bob Link, as always!
12 - truer words have never been said...
If you had six months severance pay, what would you be doing? Would you be looking for another BigLaw job or in-house counsel or something else entirely?
Scared CWT associate.
New thread is up now:
http://abovethelaw.com/2008/07/cadwalader_is_a_disaster_zone.php
20 - Something else entirely
I heard that Cravath is no-offering a significant portion of its summer class in NY.
I so miss the days when I could use cool handles like "Transactional Nostradamus" to log in, I assume Lat scams more ad dollars with this retarded system. . .
Anyway, Cadwalader has always had a crap reputation - even ten years ago they were known as a bucket shop which churned garbage CDO/CMO/CLO/JUNKMO paper. Nonetheless, I am amazed at the collossal misplanning and exceptional greed (all firms have greed running in their blood, but c'mon, now, CWT). Basically they apparently run that place like a Chinese shoe factory, and when people buy fewer shoes, you can the workers.. So, CWT is done for at least 5-10 years, as this is not just layoffs, if you look closer it really speaks to their management's golden "strategic planning." Students and future students should beware of CWTrashT for three law school generations.
FYI, transactional/corp fin/cap markets at better big firms is slightly slower, but still quite strong. Chin up, people!
Bravo, Mr. White! you join the ranks of some of America's greatest leaders! You are an inspiration to those remaining at CWT and to those brave lawyers who gave their careers on the battlefield of Structured Finance.
Bravo, Mr. White! it's a leader's job to make the tough decisions, but those of us who share the great view from the top understand that the goal is to maintain profits per partner, and not to further associates' careers.
Bravo, Mr. White! you had no choice. Who could expect the average CWT partner to live on less than last year's PPP of $2.7 million? Bud Fox asked Gordon Gekko, "How many yachts can you water ski behind?" Mr. Fox -- I suggest that you ask Mr. White.
Bravo, Mr. White! your timing is to be applauded. This way your summer associate class has no delusions about what goes on at CWT. That on-campus interview schedules are now closed, and these young men and women have exponentially fewer choices...? They should have anticipated this possibility before spending the summer at your firm! In fact, I wouldn't be surprised if these layoffs were designed as a Darwinian test of your summers -- to pursue the ones that anticipated this issue and astutely planned ahead.
and finally, Bravo, Mr. White! for your humanitarian gesture (which you were kind enough to point out) that you were actually doing these people a service by terminating them now, when it's going to be easier to find a new job before the end of the year.