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Nationwide Layoff Watch: Dewey & LeBoeuf?

Thursday, July 24, 2008 1:08 PM - By David Lat

Dewey LeBoeuf LLP logo D&L DL Above the Law blog.jpgThe law firm of Dewey & LeBoeuf has gotten a number of positive shout-outs in ATL. We’ve praised them for everything from their charitable contributions to their sports law practice to Denim Day (which was recently reenacted, last Friday).

But not everything at Dewey & LeBoeuf is peachy keen, it seems. Back in May, in the comments to our post about Dewey’s commendable response to humanitarian crises in China and Myanmar, there was talk of layoffs. We also heard such rumblings around that time by email:

Things aren’t looking so good here at D&L — rumors of layoffs, scaling back the summer associate program, pinching pennies every which way (no reimbursement for ABA dues, etc.).

I’ve heard about some layoffs at Dewey LeBeouf. One of my good friends was just laid off…. They’re trying to spin it as a result of the merger, but he thinks it’s that they’re overextended.

Now, a few months later — that was May, and now we’re almost to August — the rumors are surfacing again. From more recent messages we’ve received:

I heard that Dewey and Leboeuf had laid off several paralegals and staff attorneys. Have you heard anything about this?

I heard there have been multiple “outplacements” (their term) [at Dewey] in the last week… like at least five within the last week and maybe more in the corporate department (more than ten in the last couple months?). Apparently, they are getting four months’ severance.

We contacted the firm, which denied the layoff rumors and issued this statement, through a spokesperson:

[W]e conduct formal bi-annual performance evaluations for our associates to ensure that we maintain the highest quality of client service. Indeed, we are part way through a performance evaluation cycle now. In addition, throughout the year, we regularly review associate performance informally.

As you know, attrition is a feature of life for large law firms. Any departures you may have heard about are not layoffs. In fact, our associate numbers are up from last year.

Read more, after the jump.

Citing increased headcount — what might be called the Paul Hastings defense — while somewhat persuasive, is not completely conclusive. During a bad economy, voluntary associate attrition decreases dramatically, since there’s nowhere for anyone to go. But new associates, including summer associate classes from prior years, continue to arrive. So a firm can have its associate headcount remain stable, or even increase, and still be laying people off.

What’s the difference between a layoff and a performance-related departure? It’s hard to say. Layoffs are often done en masse. But if performance evaluations for everyone take place at fixed points in the year, they will also lead to multiple lawyers being dismissed at roughly the same time.

Layoffs are generally chalked up to the poor economy, rather than subpar associate performance. But when picking whom to lay off, firms will keep the people they regard as high performers, and dismiss those they regard as less stellar. Firms may also raise their standards for what constitutes acceptable performance during a tough business environment, in which there isn’t enough work to go around.

For more on the sometimes elusive distinction between layoffs and performance-related dismissals, see the discussion in the comments to our post about reductions in the ranks at Pillsbury Winthrop.

If you have the inside scoop of what’s going on at D&L, feel free to drop us a line.

Earlier: Humanitarian Crises in Myanmar and China: What’s Your Firm Doing?

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Posted in: Dewey & LeBoeuf, Layoffs

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