Nationwide Layoff Watch: Clifford Chance (Redux)
Twenty Litigators Laid Off, in NY and DC
About a year ago, Clifford Chance was one of the first firms to conduct layoffs (at least openly, to their credit). In November 2007, the firm laid off six associates in structured finance, one of the first practice areas to get hit by the credit crisis.
Today Clifford Chance is announcing additional cuts. Individual and group meetings have been and are being held, in both the New York and Washington offices. Litigation is one of the affected departments.
Interestingly enough, Clifford Chance recently snagged the #1 spot on the American Lawyer’s list of top-grossing global law firms (ranked by 2007 revenue). Will its proactive response to economic turmoil help CC keep the top spot for 2008? Or are the cuts a sign of deeper troubles at the firm?
We have calls and emails into the firm requesting details about the layoffs. We will update this post as soon as we hear more.
Update (2:30 PM): One tipster tells us that the layoffs have affected “at least 20 associates.” This source adds that the layoffs have affected the classes of 2005, 2006, and 2007.
Update (2:45 PM): We’ve received a statement from the firm. It reads, in part:
Clifford Chance today told 20 associates in the firm’s U.S. Litigation & Dispute Resolution practice they would be laid off as sluggishness in litigation matters continues despite market volatility that historically has produced countercyclical balance. There will also be a reduction in Business Services staff that follows in the fourth quarter.Those attorneys in New York and Washington, D.C. affected by today’s decision are held in high regard by the firm. These layoffs were not performance-driven, and those affected will receive severance packages and outplacement services.
You can read the complete statement after the jump.
CLIFFORD CHANCE — PRESS STATEMENT — LAYOFFS
OCTOBER 14, 2008
NEW YORK — Clifford Chance today told 20 associates in the firm’s U.S. Litigation & Dispute Resolution practice they would be laid off as sluggishness in litigation matters continues despite market volatility that historically has produced countercyclical balance. There will also be a reduction in Business Services staff that follows in the fourth quarter.
Those attorneys in New York and Washington, D.C. affected by today’s decision are held in high regard by the firm. These layoffs were not performance-driven, and those affected will receive severance packages and outplacement services.
Clifford Chance has a leading litigation practice with more than 100 litigators in the U.S. and almost 500 globally, working on both domestic and international matters. The firm’s U.S. practice has received several major, multi-jurisdictional instructions and is receiving more matters relating to the credit crisis. However, the long-anticipated increase in overall U.S. litigation activity has not yet appeared. The firm is taking action now in light of market conditions.
Earlier: Nationwide Layoff Watch: Clifford Chance
Global 100 Rankings: Some Firms Are Doing Just Fine
(153) 
Comments
First?
First?
First?
Poor guys. Hope they land on their feet.
and the band kept playing...
First?
Makes me so happy when Lat does a post. No offense Elie - I like your humor.
Never forget the 2002 memo from partners to associates.
Never...forget.
Well, would the band stopping have any effect? Might as well enjoy the music.
shit.
Oh, come on! This sucks...
What's going on at Dickstein Shapiro? There were hints of layoffs last week - any updates?
Which firms other than Clifford Chance and Cadwalader have had multiple rounds of layoffs?
order restored
What was the 2002 memo? Too lazy to Google. Thanks.
Whatever happened to litigation being countercyclical? I can see layoffs in structured finance, but litigation?
Whatever happened to litigation being countercyclical? I can see layoffs in structured finance, but litigation?
What? A post which includes inside information not posted several days ago on some other legal blog, and it comes from Lat and not Elie? Color me shocked.
Whatever happened to litigation being countercyclical? I can see layoffs in structured finance, but litigation?
16, 17 & 19 - Once more for the people in the back.
15, See below:
http://www.lawcost.com/clifchancememo.htm
what about layoffs at hunton and smith gambrell in atlanta?
This rumor must be true, I just walked by their office and saw Donald Trump outside clearing his throat.
This is awful. I hope those poor guys can find other jobs quickly. How come CC isn't working on reducing its army in London? Why target only the US offices?
13 - Thacher Proffitt?
13- well, Heller for one... and Thelen.
Lat-You should have given the by line to Ellie. It would have helped his creditability as EIC.
*gets more nervous about what the future holds*
-nervous T-10 1L
28 - I'm considering no-offering all Michigan 1L interviewees just to be sure that we don't get you. Drop the "joke."
28 - I'm considering no-offering all Michigan 1L interviewees just to be sure that we don't get you. Drop the "joke."
CC seems to enjoy doing things to kill their law school recruiting. Layoffs last year happened during the middle of recruiting season, and the same thing is happening this year.
Apologies for the double post, but I assure you that I'm not the only one considering it.
- 29/30
sucks for anyone who alread accepted an offer based on their supposedly strong revenue
21 -- I love that memo. Free shoe shines. That's funny. I sincerely hope whoever put that in the memo was fired.
At least they did it openly and honestly, rather than laying people under the guise of bogus performance-based cuts.
Best of luck to all of the laid-off associates. I'm glad they at least made it clear that your performance was great. I'm sure you'll land on your feet.
Clifford is TRULY a THIRD TIER TOILET. This really is the last straw for the firm and pretty much ensures that they won't get students from top schools in the foreseeable future.
37--
You must still be in law school. Students from all schools, top tier included, will be fighting for whatever jobs they can get. The good times are over.
Ominous closing to the memo:
"[T]he long-anticipated increase in overall U.S. litigation activity has not yet appeared. The firm is taking action now in light of market conditions."
What about Heller's 100 layoff's yesterday?
happy i got dinged at callback.
"Clifford Chance has a leading litigation practice... "
All law firms should aspire to be so leading that they can associates. What a standard CC has set.
37 - Doesn't matter much. I'm a graduate of a T14, but most junior associate work could be done by just about anyone who can pull it together enough to pass a bar exam. Whether CC gets middle/bottom at UVA or top/middle at Fordham/Brooklyn/Cardozo/whatever isn't going to matter for a few years, at which time they can pull desperate mid-level laterals looking to get out of whatever hellholes they're in.
Anybody receive any word on the Bingham and LeClaire mass summer associate no-offers that have occurred this past week?
Any word on what the severance package entails. Will it be Helleresque??????
Severance package consists of 1 million frequent flyer miles on United and a box of Virginia peanuts.
Enjoy.
Looking back, I think the CWT associates who were canned earlier this year got off lightly. They got six month severance payment while CC associates get the above.
The real story here is that 20 associates are let go, but not a single parTTTner!!!!!!
44 - What's a LeClaire? I like eclairs.
"Never forget the 2002 memo from partners to associates.
Never...forget."
Ha -- love the subtle irony. Apparently you've already forgotten, since that memo was from associates to partners...
29, 30, 32: why the hate? you would be nervous too if you had to try and find a paying 1L job in this economy w/160K in debt. i’m just using ATL as an outlet to talk about my nerves. i wouldn’t want to work with anyone who would no-offer all michigan 1L’s b/c of that.
-nervous T-10 1L
37, you obviously have no idea what you're talking about. The 2008 class in DC includes honors students from UVA, Georgetown and Penn. It includes people who summered at Skadden and went to Clifford Chance. No one new in the DC office is from outside a top 20 school.
Dear T-10 1L:
You, like me and most 1Ls last year, will not get a BigLaw job this summer.
Best regards,
T-10 2L with offers
51, angry DC partner
51 - UVA doesn't have "honors." Uncredited.
How did they decide/pick the 20 associates?
You're annoying. It sucks for many of us right now. Buck it up and be productive with your time.
Good luck, but please stop with the unfunny, annoying posts. You'll be fine: firms are still hiring, and you go to a great school.
- 29/30/32, Michigan '03
seriously brutal being one of the CC LIT 20...hopefully there are other "leading litigation practices" who need associates. Can someone define leading? Leading where? Looks like these poor associates were led into the pit of despair.
55,
It starts with "Eeny, meeny, minie, and moe...."
If they really liked the associate, they would allow him/her to use rock/papers/scissor with HR. If he/she won, that person stays.
56 -- are those your body measurements? if so, nothing to brag about.
This is the sign of a poorly, poorly run firm. Clearly, they're not being managed well - why accept an offer from them if they're only going to turn around and fire you? Neg.
This is the sign of a poorly, poorly run firm. Clearly, they're not being managed well - why accept an offer from them if they're only going to turn around and fire you? Neg.
This is the sign of a poorly, poorly run firm. Clearly, they're not being managed well - why accept an offer from them if they're only going to turn around and fire you? Neg.
This is the sign of a poorly, poorly run firm. Clearly, they're not being managed well - why accept an offer from them if they're only going to turn around and fire you? Neg.
Thacher Proffitt had 365 attorneys last Fall and has about 190 now--now that's how you downsize.
This is the sign of a poorly, poorly run firm. Clearly, they're not being managed well - why accept an offer from them if they're only going to turn around and fire you? Neg.
Thacher Proffitt had 365 attorneys last Fall and has about 190 now--that's how you downsize.
62, 63, 65 - CC LIT 20? Former partner perhaps?
Is this the sign of a well, well run firm?
5:
I believe you mean "and the band played on"
67 - Nah, in house at a production studio. (62/63/65 - sorry, guess I hit button more than once).
Wow, but according to the President the fundamentals of the economy remain sound.
NY to 190 (attorneys remaining at Thacher Proffitt)!
59 - I'm a guy. Thanks, but not interested.
- 56 (40R, 33/31, 15.5/33.5)
56, 79 --
He's not interested in your man-boobs. He's laughing AT you and not with you.
Get it?
God, you must have a reputation of being slow in your firm.
69: good catch. i meant to revise, but figured nobody would get it/cared. at least i know someone is paying attention.
FIRST!!!!
Thelen has 89 NY associates listed on their NALP form and now only 51 on their website.
Clifford Chances has 218 listed on NALP, 171 on their website.
Simpson Thacher has 518 on NALP, 433 on their website.
29/30/32/56, Michigan '03 - you are dumb as bricks. it's a joke. there are many people who comment under the guise of "nervous t-10 1L." get out of the office, live a little so you can understand a joke (albeit a horrible one). you've got no shot at partner anyways. i mean, you're trolling this website for god sakes. a 2003 graduate. trolling this website. fucking pathetic.
74 - What's so humorous about my posts? They go something like this: (1) Nervous Michigan 1L is annoying, I ask him to stop; (2) Nervous Michigan 1L is clearly bothered by my joke, I feel a little bad (I know...) so remind him that he goes to a good school and that he'll be fine; (3) Lame joke is made about my measurements; (4) I reply with a lame joke.
Anyway, being slow at my firm is still better than being a superstar at most others.
Go Blue.
Crushed BigLaw belief of the day.
"But, but ... they would NEVER fire meeee, I'm just a first year."
jesus, and i posted my comment before 29/30/32/56, Michigan '03 listed his "measurements" on this website.
this guy must be a delight.
79,
Not only are you slow, you also (apparently) possess moobs.
Which firms are next?
83,
I think the more productive question is -- which firms are NOT next?
I think, no matter what the Dow says, and no matter if the credit freeze is alleviated, we are still headed downwards to a severe recession, and a lot of law firms will be doing the stealth layoffs.
Don't plan on a career in Big law because the firm will be finished with you before you realize it.
"Anyway, being slow at my firm is still better than being a superstar at most others."
Sounds like a great pick-up line...you should try it next time you're trying to impress the opposite sex.
Let us know how that goes....
Kudos to the firm for saying the layoffs were not performance driven. Although laying off juniors is particularly cold.
46--The CWT associates who got laid off in January only got 3 months severence. The ones laid off in august got severence until teh end of the year--they benefitted from the layoffs being leaked.
The whole law firm paradigm has officially changed--there is less job security at BIGLAW than any other law.
85 = heteronormative. NObama.
46--The CWT associates who got laid off in January only got 3 months severence. The ones laid off in august got severence until teh end of the year--they benefitted from the layoffs being leaked.
The whole law firm paradigm has officially changed--there is less job security at BIGLAW than any other law.
What about Linklaters? They are the second largest magic circle firm in NY
The bank bailout doesn't do anything about the underlying housing value declines. In addition, there are rising levels of defaults on credit cards. And, there are the credit derivatives looming in the horizon.
The magic 8-ball if you've been following the news is a severe depression is coming along.
Biglaw is not the place you want to be when it occurs.
Use at your own risk.
How is there not enough litigation work for that many NY/DC associates at an elite firm like Clifford Chance? Did rainmaking partners leave? Are there in some arcane specialty? I thought litigation was supposed to be pretty busy in those cities.
91 = Biglaw reject
77 - As a general rule, firms do not put you on the website until you pass the bar. I'm not even sure if they are allowed to. Wait until December to make that comment.
92 - but for 1 or 2 all the raimakers left in litigation by 2004 no? Who is left?
77 - As a general rule, firms do not put you on the website until you pass the bar. I'm not even sure if they are allowed to. Wait until December to make that comment.
The over/under on the (in)famous Aaron Charney being one of the 20?
No Drudge siren?
97 - he's not a litigator
CC deserves credit for affirmatively pointing out that (1) it holds these attorneys in high regard and (2) that the terminations were not performance-based. The departing attorneys will be out in the job market, and not having a fabricated cloud of poor performance hanging over their heads (to justify the layoffs from the firm's perspective) is important.
who doesn't love cclit?
Over at CC today, Elvis left the building and the fat lady was warming up.......
responding to 94: STB's website does list associates who have not passed the bar yet.
77/103: But the majority of STB's first years have not started yet and are not on the website.
the fact that clifford publicly stated these layoffs weren't performance driven a la shearman deserves some credit.
90 - I'm at Linklaters in NY and we are very, very busy. NY litigation is flat out. Transactional associates are all working steadily, some more than others depending on whether you've been sucked in to bank merger/rescue/failure work. US summer associate hiring has not been cut back materially. So no, no one here is worried about layoffs except to the extent it's possible that the US is heading for a second Great Depression, in which case we're all screwed. In fact, the firm's overall profits per partner this year may be UP this year.
CC may have topped AmLaw on the gross revenue number, but it sounds to me like they are concerned about their falling profitability relative to other global firms.
According to the below article (which looks to be recent), litigation should be increasing.
http://abajournal.com/news/more_in_house_counsel_predict_jump_in_litigation_spurring_lawyer_hiring/
When I left CC a few years ago, they were focusing their worldwide business development model on getting more business from their big clients - i.e., the big investment banks - to the detriment of developing other clients. That worked well in the UK/Europe, where the CC brand was stronger, but didn't work as well for the US (esp. lit.), because the big banks were going to better US-based firms. If CC was still focusing on chasing after those big banks this year, and then those big banks all disappeared - well, then they'd be pretty toasty right now.
Glad I left.
106 - yes, the 11 partners and associates in your M&A practice must be just flat out...
#109
It is sad that you actually took the time to look up the number of lawyers in their practice. Do you feel better about yourself now that you have anonymously attempted to insult someone?
91,
News sources are predicting a severe depression? Wouldn't they be opinion sources? I get mine from The Economist, where folks are appropriately concenred but - unlike you - aren't shitting themselves...
Good luck to all of the CC associates out there - they really are a good and talented group.
- former summer, current V10 associate
Good luck to all of the CC associates out there - they really are a good and talented group.
- former CC summer, current V10 associate
13 and 26 - not to mention Kaye Scholer...
Stealth lay-offs since the beginning of the year in the RE and Corp departments. Word has it there are more to come...stay tuned and watch for those denials!!
I think Heller is looking to hire nervous Michigan 1Ls with bizarre measurements.
97: if the tipster is right about the affected years, it wouldn't be him. He's an 03, and s/he said that 05s and junior were the ones hit.
114- hows Kaye Scholer's IP/Lit/Prod Liability groups doing
112 - no one gives a sh*t that you work for a v10 firm (other than your insecure self); as if that validates your comments somehow. Get a life...
Did CC already delete the names off their web site? An old friend of mine was working in their DC office as far as I knew, and her/his name is not on there. Hoping not part of the cuts....sad!
100 & 105 are CC trolls. The firm (and litigation department especially) have crappy management and the current partners are inept at getting any new work. But the firm fires only associates, while keeping on way too many USELESS partners. They don't deserve credit for throwing young associates under the bus.
Good luck to those associates!
117 - Lit is really slow too, I wouldn't be surprised if there were layoffs starting in lit soon just like there has been in Corp and Re. And in true Kaye Scholer fashion, it will probably be layoffs masked as a result of poor associate reviews, when in fact its nothing more than a result of poor partner revenue.
118 -
I love the comments to this blog - damned if you do and damned if you don't. If I had left off the "current associate at V10 firm" moniker, I would have seen comments like "you obviously work at a TTT place if you think that Clifford is worth two shits", or "CC Troll".
The thing is, I don't particularly think that you should care where I work or that it somehow validates my comments, but unfortunately many on this blog seem to take the exact opposite stance on "prestige" as you do.
I think the associates at CC NYC are generally very talented lawyers and its a shame that they are experiencing these layoffs because the partners can't drum up enough business. While I like where I work and am thankful that we aren't experiencing layoffs, in no way do I think that just because I work at a V10 shop I am *necessarily* a better lawyer (or a better person) than someone who doesn't.
-112
112/122: Please stop communicating on this blog.
-Not 118.
112 = Trig Palin
112 - After reading your 122 comment, I apologize for the strong negative comment directed towards you. I simply have no patience or tolerance for those people in this profession that measure their self worth based on the ranking of their firm, as measured by Vault.
-118
I measure my self worth by how many letters your mother sends me.
Boomshakalaka.
@ 22: more info please -- what layoffs?
I'm #51. I'm not a DC Partner. I just know one of the associates very well. As for the honors comment, the associate I know who is now at Clifford Chance was honor at Georgetown. The UVA guy was the transfer who summered at Skadden. This is a firm that still knows how to pull weight.
At least CC was honest about why the associates were laid off. I would hate to have a firm say it is "your fault" rather than the economy.
My understanding is that today's CC layoffs are attributable mainly to poor recruiting and hiring decisions over the last 2-3 years. CC didn't have (or develop) the wherewithal to provide enough litigation work to that many junior associates.
Among other things, this is disconcerting because the 2008 class is roughly the same size as the previous two. And CC couldn't fire first-years after only a few weeks on the job. So I would not be surprised to see further cuts a year from now unless business seriously picks up (and most expect that it won't). My understanding is that CC is also still considering cuts in other practice groups.
The blame for this largely falls upon the partners who couldn't pull their weight. My understanding is that a number of CC US partners are being pushed out and that certain others are being bumped from equity to non-equity. Maybe this will push partners harder to bring in business and to expand their practices, but I have my doubts.
110 - don't worry, 109 didn't take the time to count (or is incapable of counting) because his number is off by well more than 100%.
No GULC grads were affected, obviously.
114/121- any news of IP or prod liability at KS. I'm interested in their IP lit
Rumor is that Alston & Bird had some layoffs yesterday as well.
http://www.thevillageidiotblog.com/2008/10/layoffs-at-alston-bird.html
There is definitely a slowdown in litigation work at biglaw. People seem to be in denial about it. I work at a large firm in litigation and we have been slow all this year. The people who do have work are terrified and are hoarding it.
How big a slow down in terms of hours (if the pace stays the same)? Only looking at 2000, 1800, less?
What about US associates in foreign offices with CC or other firms? Are their jobs more at risk than US offices since they are not on the radar?
My guess is that international deal flow will be substantially reduced with credit markets as they are.
What about US associates in foreign offices with CC or other firms? Are their jobs more at risk than US offices since they are not on the radar?
My guess is that international deal flow will be substantially reduced with credit markets as they are.
130 - QUESTION -
2-5th years are the most profitable of a law firm. They can do all of the substantive work at the least cost and with enough productivyt.
But CC is laying them off? Why? Next year, these would be the most profitable members. Why not lay off senior associates or of counsels instead.
I'm not trying to be mean, I'm just trying to understand. It seems a bizarre financial decision.
The only explanation is that it's been so slow the 2nd and 3rd years are functionally 1st years. Is that so? hmm...
Do we know for sure which classes were laid off?
Unless an entire department is let go at one time, everyone knows that this is at least to some extent performance driven. There is no way they would fire the better associates and keep the worse ones.
Magic Circle.... jerk?
141 - maybe you're right, but I still don't think it makes sense to place blame on the associates.
For example, if Weil fires a bunch of bankruptcy associates tomorrow, then that obviously speaks more to the quality of the associates than the state of Weil's bankruptcy dept.
But in this case, the health of CC"s lit department is questionable, so we can't make the same assumption for the CC associates that we did for Weil.
The bottom line is that the partners/management over there royally screwed up, and this isn't the first time. It also puts an ironic twist on all the fanfare these global megafirms have received in the past, boasting about figures such as gross revenue and geographic diversity. Very sad stuff.
Where's the siren?
why the hell do lawyers bitch about layoffs? get used to it bitches...way it goes.
I'm not sure if any lawyers got the axe, but I heard from a friend at Charlotte firm Moore & Van Allen that around 20 staff were laid off today. Apparently their computer access was cut off about 10 minutes after the folks in benefits told them that they were being laid off.
141 - that's not necessarily the case. I know some of the folks that were laid off yesterday. Most had above average, if not great mid-year reviews and were billing way more than some of those who were left behind. Word on the street is that the decisions were completely arbitrary.
Good luck to all 20!
So in AM-Law Litigation Daily, survey of in-house counsel shows that litigation will be rising soon, but Clifford Chance is laying off young litigators? This is a disconnect.
I believe that many are slow (milking the FCPA investigations for all they are worth; and check out all the partners at the status hearings).
Perhaps the Am-Law in-house survey is inaccurate, perhaps Clifford Chance had reason to believe that it would not benefit from the expected up-tick. Which do we think it is?
Welcome to the wonderful world of OUTSOURCING! I hear Clifford Chance has a BRAND SPANKING NEW building in Delhi, India with capacity for over 600 people! It is supposed to be for "word processing operators" but how much you wanna bet plenty of those seats are reserved to do work that some of you lawyers do now?
Everybody stands by and watches as one thing gets outsourced after another: factory work, call center work, data processing work, word processing work, lower level investment banking research, lower level legal work ... where will it end? Massive unemployment and jobs shipped to places where its citizens do not pay taxes in the US and do not spend their money in the US (except perhaps as tourists to see how NY now looks like Calcutta used to). Wake up people, they're coming for YOUR jobs.
Quote from findlaw.com article:
Integreon's 45,000-square-feet Delhi facility will open in spring 2007 and will accommodate over 600 workstations. Clifford Chance will be the anchor customer for the site. The venture is innovative in that Integreon will manage the start-up and operation, working together with Clifford Chance employees in the service center. The Delhi facilities will enhance Integreon's business continuity planning offerings to customers that operate out of Mumbai.
"Clifford Chance's decision to dramatically expand its relationship with us is further validation of our business model to grow organically by focusing on activities where we can provide our clients with unparalleled standards of service and security," said Liam Brown, Integreon's president and CEO. "Our venture represents a true partnership and allows Clifford Chance to offshore certain labor-intensive functions to India while mitigating many of the operational and management risks associated with building and operating a captive center in a new country, such as the widely reported challenges of recruiting and retention in India. Many of our customers have a blended sourcing relationship with Integreon, in which they keep core functions in-house and outsource non-core functions to us, and we expect to enter into many more similar ventures in the future."
Amanda Burton, Clifford Chance's director of global business services, commented: "In the nearly two years we have worked with Integreon, the company has established a reputation for reliability and repeatedly demonstrated that it can meet our demanding and exacting professional standards. We have also been impressed by their high level of physical and data security. Although Integreon to date has concentrated on handling our document production, we are confident that our expanded relationship with the company will be highly successful."
*****************
Who is next?
Litigation at Clifford Chance has been suffering and slow for a very long period of time, partially due to London not being interested in investing in a US litigation group. The recent economic issues affecting transactional work are not the reason for the litigation lay-offs. Clifford is just opportunistically using the economy as excuse to trim its US litigation ranks.
151 = CC's HR
actually London is probably quite interested in investing in a real litigation group, or maybe just certain of the partners they have.....