Layoffs

Nationwide Layoff Watch: Reed Smith Cans Staff, Associates, 'And Your Little Dog Too'

By  
on

Reed Smith officially announced massive layoffs today. They didn’t do it “stealthily,” but you can’t really fire over 115 people and have it go unnoticed.

A firm-wide email explained the bloodbath:

Today we are laying off approximately 115 support staff personnel across our US offices. These layoffs include people in all of our support areas, including IT, finance, marketing, practice administration, knowledge management, human resources and office services. In addition, in London we are today commencing what is known as a redundancy consultation exercise, under procedures unique to the UK, that could result in the elimination of up to 7 support staff positions there. Lastly, we are also commencing a UK redundancy consultation exercise that could result in the elimination of up to 11 associate positions in the Business & Finance department in London due to overcapacity.

“Redundancy consultation exercise?” You have to love the British use of the English language.

I guess we have to be happy that Reed Smith decided to announce these layoffs officially. Reports have come in from multiple tipsters that the firm has been “quietly shedding people” for weeks. These moves will come to no surprise to Reed Smith associates working out of the New York office.

It’s sad to see the firm cutting so many people just after they acquired a large chunk of Thelen refugees. A couple of weeks ago, we reported:

Reed Smith is another firm profiting from Thelen’s demise. Check out the pun-aided press release from the firm:

“Reed Smith LLP, one of the 15 largest law firms in the world, experienced a power surge today, with the addition of a 14-member group from Thelen, headed by renewable energy law pioneer Ellen L. Bastier.”

These attorneys also come from San Francisco. Kudos to the new hires.

But, to quote Bill Simmons paraphrasing The Wolf, let’s not start licking each others’ popsicles just yet.

Remember, it wasn’t all that long ago that Orrick was happily announcing 27 new partner hires from Heller — 27 new partners then, 40 freshly unemployed associates now.

Sponsored

Pushing 115-plus Tony Rocky Horrors out of a window might be excessive, but Reed Smith people should have expected a “reaction.”

Read the Reed memo after the jump.


REED SMITH — MEMO — LAYOFFS

I am writing to let you know about some personnel actions that we are initiating today at Reed Smith, affecting both staff and lawyers. Although our diversified business model has held up relatively well through a very challenging year, these decisions were difficult but necessary in light of the continuing slowdown in the economy and the projected demand for our services in 2009.

Today we are laying off approximately 115 support staff personnel across our US offices. These layoffs include people in all of our support areas, including IT, finance, marketing, practice administration, knowledge management, human resources and office services. In addition, in London we are today commencing what is known as a redundancy consultation exercise, under procedures unique to the UK, that could result in the elimination of up to 7 support staff positions there. Lastly, we are also commencing a UK redundancy consultation exercise that could result in the elimination of up to 11 associate positions in the Business & Finance department in London due to overcapacity.

Sponsored

The decision to take these actions was difficult, but we believe it is the prudent thing to do for our business over the longer term.

Our recent experience and our projections dictate that we must plan for reduced demand for our services in 2009 and align our capacity accordingly. Many leading international law firms and other businesses are engaged in similar actions during the downturn, and these steps are fundamental to being a financially sound business that is intent on remaining strong for the future. It is hard to do, but necessary for all businesses in these difficult times.

Taken together, these personnel actions will impact less than 4% of our total workforce, and those involved are being informed of these actions today.

Our colleagues involved in these actions have all made meaningful contributions to our firm. We regret having to take these steps, and all of those who leave us will receive appropriate pay and severance packages. We will do whatever we can to help them, and would appreciate any support you can provide as well.

This is a hard day at Reed Smith, and one we all would have liked to avoid. We will need to work together to adjust to this change and keep our focus on doing great work for our clients. Thank you for your help and understanding.

Earlier: Howrey and Reed Smith: Latest Beneficiaries of Thelen’s Shutdown

Topics