Nationwide Layoff Rumor: TPW to Cut Structured Finance Department

By  
on

Thacher Proffitt and Wood has declined to comment on the latest reports coming out of their New York office, but we now have multiple tipsters that are reporting on layoffs in TPW’s structured finance practice group.

Today’s cuts appear to be directed at staff. Paralegals were informed throughout the day of management’s decisions.

Another tipster reported that attorney layoffs are expected to follow soon. They were expected by the end of the day, but as of this writing that does not appear to have happened.

These rumors bring together two forces most ATL readers are already aware of: the complete lack of structured finance work, and the difficult state of affairs over at TPW.

The knives have been out for TPW for months. Over the summer, they had to tamp down dissolution rumors. Then a potential merger with King & Spalding fell through. At the end of October, TPW abandoned its outpost in White Plains, NY.

Update (12/11/2008): Actually, as of this date, TPW and KS are still in talks (but not for a complete merger; KS may pick up roughly half of TPW’s lawyers).

More after the jump.

Sponsored


All the way back in June, it was clear that 2008 would be a very tough year for TPW. Back then we mentioned that the real hope was for the firm to rebound in 2009:

Some former partners told the NLJ that firm profits are anticipated to slide substantially in 2008. Last year, Thacher Proffitt reported slightly more than $1 million in profits per partner, down about 22% from 2006, according to AmLaw. Other departing partners downplayed the significance of the firm’s finances in their decisions.

Paul Tvetenstrand, the firm’s managing partner, said the recent partner departures were unrelated to the layoffs. But he acknowledged that the total number of them was “a lot, for a short period of time.”

“It’s a tough marketplace to be in,” he said. “I would fully expect in 2009 to bounce back to the levels we had beforehand. But I don’t know what 2008 will be.”

Now the relevant question is whether or not TPW can make it to 2009. Thacher Proffitt had a lot of business tied up in securities, and they still don’t seem to have replacement practices that can pick up the slack.

So laying off the structured finance group seems like a logical step. Again, without confirmation from the firm, it’s just a rumor. But it is a rumor that makes a lot of sense, given everything else that has happened at the firm.

Good luck to the displaced staff. We’ll keep you posted if we hear anything else.

Sponsored

Earlier: Thacher Proffitt & Wood Abandons White Plains

Update: Thacher Proffitt Denies Dissolution

A Thacher Update: Sagging ‘Proffitt’ Fuels Departures

Topics