Layoffs

Nationwide Layoff Watch: Proskauer Cuts 60 People

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If you thought that law firms wouldn’t fire people between Thanksgiving and Christmas, think again. We’ve received reports today that Proskauer Rose has decided to layoff 35 associates and 25 administrative staff.

A firm representative offered this statement:

We are taking these actions in response to the worldwide economic crisis, as well as an unprecedented reduction in our historical lawyer attrition rate, which requires that we align our staffing with current and projected levels of activity on behalf of our clients.

We regret the need to take these actions but recognize that they have become a necessity for many of our clients and peer firms and that good business judgment requires that we staff appropriately.

We’re not entirely surprised by these cuts. In fact, we predicted that something would happen over at Proskauer back in September when Proskauer announced the salary figures for their 2009 summer associate class:

Isn’t Proskauer, like everyone else, looking to cut back on expenses where possible? Why would they lock themselves into $3,077 unless they thought that they could make cuts somewhere else along the way? What other factors could possibly come into play to push summer compensation higher than it was last year?

More bad news continues to flow in from all across the legal landscape. But give Proskauer credit for doing these layoffs the right way. They didn’t use stealth performance reviews to make the cuts, and all the associates will still be eligible for their 2008 bonus:

Those affected will be eligible for severance pay, health care benefits and outplacement counseling, as well as payments of the 2008 bonuses they would have received had they remained with the firm through year end.

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Read the full statement after the jump. Good luck to all the former Proskauer people now on the market.


PROSKAUER ROSE — STATEMENT — LAYOFFS

Statement – December 4, 2008

Proskauer Rose LLP announced today that it is laying off 35 associates across its offices. In addition, the firm is laying off approximately 25 members of its administrative staff.

Those affected will be eligible for severance pay, health care benefits and outplacement counseling, as well as payments of the 2008 bonuses they would have received had they remained with the firm through year end.

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We are taking these actions in response to the worldwide economic crisis, as well as an unprecedented reduction in our historical lawyer attrition rate, which requires that we align our staffing with current and projected levels of activity on behalf of our clients.

We regret the need to take these actions but recognize that they have become a necessity for many of our clients and peer firms and that good business judgment requires that we staff appropriately.

Earlier: Proskauer Rose to $190K?

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