Nationwide Layoff Watch: Reed Smith Cans Staff, Associates, ‘And Your Little Dog Too’
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.
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.
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
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Comments
First
fIrst
Hello?
fIrst
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fIrst
Its gunnna RAIN!
just received another ding. this one from the west coast. nationwide ding alert! (not the southwest kind)
-nervous T-10 1L
email job leads to nervoust101l@yahoo.com
4 dings :(:(:(:(
175 pending...
1 'wait until january' :/
Let's not let poor reporting disguise the facts:
1. less than a dozen attorneys were let go;
2. RS was upfront and apologetic;
3. not a single US attorney was let go.
nice job on the coverage Mystal...
"you can't really fire over 115 people and have it go unnoticed."
Actually, yes you can, and we have. You just haven't noticed.
- Big Law Firm
Reed Smith is always copying K&L Gates. Those two should merge so that those of us in BI won't be 3d fiddle to those two in Pittsburgh.
Reed Smith is always copying K&L Gates. Those two should merge so that those of us in BI won't be 3d fiddle to those two in Pittsburgh.
"you can't really fire over 115 people and have it go unnoticed."
Actually, yes you can, and we have. You just haven't noticed.
- Big Law Firm
Lick each other's popsicles?
Am I the only one to see something pornographic about that imagery?
So now that they shed all this dead weight, they can pay Skadden bonuses, right?
"You have to love the British use of the English language." - Maybe, but I prefer Elie's Brutish use of the English language. So much for Ivy League reps.
Reed Smith has let attorneys go as well. They were not done in a massive lay off like the staff, but over the past several months they have been shedding attorneys in their business and finance department citing the economic downturn as the reason for the dismissal.
Reed Smith has let attorneys go as well. They were not done in a massive lay off like the staff, but over the past several months they have been shedding attorneys in their business and finance department citing the economic downturn as the reason for the dismissal.
Hey 15, BI has wet dreams about being 3rd fiddle. You're minor league.
Please immediately update with a photo and bio of Eliza Gray.
Let's not call layoffs a "bloodbath." Layoffs are layoffs. Bloodbaths are what happened in Mumbai
18 - no, but you are the only one to feel special for comprehending a ridiculously obvious double entendre. Congrats.
25, save your PC garbage for the firm cafateria. 115 p/p being fired is a "bloodbath."
Good point 25, though I feel for those laid off.
25 -- Metaphors always have and always will be used as a form of expression. Get over it.
Please immediately update with a photo and bio of Eliza Gray.
29 - Hyperbole and exxageration is a more accurate description, and although it is used for expression, it also cheapens the meaning of words. At some point, it would be inappropriate and crude to say Redd Smith "went Mumbai" on their associates
First to say Reed Smith is TTT
I'm pretty sure it is "Tony Rakahara" or some such-not "Tony Rocky Horror." The dude's Samoan, not a cross dresser. And Pulp Fiction references are soooo '90s.
What is TTT?
Why is it ok to say someone "went postal" but not that they "went Mumbai?"
-the mailman
Wait a second, ReedSmith is a law firm? Really?
Mystal, your future...I see a cab ride
Not surprised. ReedSmith is racist and hates gays.
31 -- Metaphors do not cheapen the use of words. It is a natural cognitive function. We think in metaphors -- it is a way for our brains to parse the world around us.
I agree that "going Mumbai" on somebody seems wrong, but as 35 points out, there are tons of examples where we accept just that kind of metaphor.
And no, neither exaggeration nor hyperbole are more appropriate. Use of the word "bloodbath" is not exaggeration, as there was no actual blood involved to exaggerate upon. Hyperbole is equally flawed, as that is a synonym for an exaggeration.
Metaphor is correct, as it is "a figure of speech in which a term or phrase is applied to something to which it is not literally applicable in order to suggest a resemblance." (from dictionary.com)
- 29
if one more person asks what a TTT is, i'm going to lose it
40 -- thanks for sharing.
what's a TTT?
I just wanna make you clap again.
- Akon
http://letmegooglethatforyou.com/?q=TTT
your welcome, 40
I hate it when a law firm takes in Thelen refugees and then lays off staff. Ohhhh, does that make me angry. Good thing Orrick wouldn't do such a thing.
Word is associates are getting fired in NY office, too. Please quit making us wait around for the news, RS.
- NY RS associate
No sympathy. Those people took themselves out of a meaningful job when they began working at Reed Smith.
-GW 1L
Reed Smith has definitely not just been "laying off" support staff. In the weeks after they opened a new office in Northern California they quietly shed at least 10 associates in addition to dropping half of the summers they had previously promised offers to. Maybe "kudos to them" for announcing it this time, but they've certainly been laying off attorneys throughout the firm for months. Suffice to say, this is not the firm to go to if you value job security.
47 - wtf???
49: Are you a Reed Smith GULCer? You sound like it with your three question marks.
-47
I say I say, Does anyone know how lawyers got through the great depression?
Better get your weight up defense counsel. If you can't write a complaint, you are about to be one broke ass sucka.
I haven't heard any unannounced layoffs in RS (NY or otherwise)
2nd yr RS corporate
33: It is Tony Rocky Horror.
You remember Antoine Roccamora, half black, half Samoan, used to call him Tony Rocky Horror?
Yeah, maybe. Fat, right?
I wouldn't go so far as to call the brother fat, I mean he got a weight problem. What's the nigger gonna do? He's Samoan.
what is this about Skadden not laying off people, they are in January.
Hey nervous T-10 1L: NO ONE CARES ABOUT YOUR JOB SEARCH. SHUT THE F UP.
52- It's happening.
-Former 5th Yr RS Lit
What about the Reed bonuses - any word?
Since Elie is apparently too lazy or apathetic to do it:
THE LIST: This list does not include "redeployments," mergers, staff, or staff attorneys.
Announced | Firm | Location | Total | "Review-Based"? | Acknowledged?
1/11/2007 Kenyon & Kenyon US 16 No Yes
10/1/2007 Thacher Proffitt & Wood US 24 No Yes
10/17/2007 Kirkland & Ellis Chicago 6 to 8 Yes No
1/10/2008 Cadwalader, Wickersham & Taft Charlotte 9 No Yes
1/10/2008 Cadwalader, Wickersham & Taft NYC 26 No Yes
2/14/2008 Winstead PC Dallas ~3 Yes Yes
2/29/2008 Dechert US 13 No Yes
3/20/2008 Thelen Reid Brown Raysman & Steiner US 26 No Yes
4/4/2008 Dewey & LeBoeuf Jacksonville 10 No Yes
4/4/2008 Dewey & LeBoeuf Hartford 22 No Yes
4/4/2008 Dewey & LeBoeuf Austin 16 No Yes
4/25/2008 Sutherland Asbill & Brennan Atlanta 8 Mix Yes
4/25/2008 Sutherland Asbill & Brennan DC <7 Mix Yes
5/12/2008 Paul Hastings US 22 Yes Yes
5/28/2008 Sonnenschein Nath & Rosenthal US 37 No Yes
6/5/2008 Blank Rome Philadelphia 6 Yes Yes
6/5/2008 Blank Rome NYC 2 Yes Yes
6/5/2008 Blank Rome DC 1 Yes Yes
6/11/2008 Thacher Proffitt & Wood US 36 No Yes
6/23/2008 Powell Goldstein US <10 No Yes
7/1/2008 Patton Boggs Dallas 4 Yes Yes
7/1/2008 Patton Boggs US 5 Yes Yes
7/14/2008 Pillsbury Winthrop Shaw Pittman LA, SF, San Diego 15 Unk No
7/16/2008 Pillsbury Winthrop Shaw Pittman East Coast <10 Unk No
7/30/2008 Cadwalader, Wickersham & Taft NYC, Charlotte, London, DC 96 No Yes
8/4/2008 DLA Piper London 1 No Yes
8/12/2008 Simpson Thacher & Bartlett global 30 Yes No
8/21/2008 Morgan & Finnegan NYC ~4 No Yes
9/22/2008 Freshfields Bruckhaus Deringer unknown <5 No Yes
9/25/2008 Heller Ehrman US ~600? No Yes
10/2/2008 Sonnenschein Nath & Rosenthal US 25 No Yes
10/14/2008 Clifford Chance NYC & DC 20 No Yes
10/20/2008 Dewey & LeBoeuf Charlotte 8 No Yes
10/20/2008 Katten Muchin Rosenman US 21 No Yes
10/21/2008 Jenner & Block US 10 No Yes
10/22/2008 Dechert US 10 to 30 Yes No
10/23/2008 O'Melveny & Myers LA 5 Yes Yes
10/27/2008 White & Case Milan 14 No Yes
10/28/2008 Thelen Reid Brown Raysman & Steiner US ~500? No Yes
10/30/2008 Bell Boyd & Lloyd Chicago 10 No Yes
11/3/2008 McKee Nelson NYC 13 No Yes
11/3/2008 McKee Nelson DC 4 No Yes
11/11/2008 Loeb & Loeb US 8 Yes Yes
11/11/2008 White & Case US, London 70 No Yes
11/12/2008 Moore Van Allen Charlotte 20 No Yes
11/13/2008 Orrick, Herrington & Sutcliffe US 40 No Yes
11/14/2008 Greenberg Traurig NYC unk No No
11/19/2008 Brown Rudnick US 20 No Yes
11/20/2008 Mayer Brown US 33 No Yes
11/20/2008 Squire Sanders US <30 Yes Yes
11/21/2008 Dewey & LeBoeuf NYC 5 to 11 Unk No
11/21/2008 Fried Frank US 15 Yes No
12/1/2008 Fried Frank US 15 Yes No
12/3/2008 Reed Smith US 115 No Yes
Nice work 58. You should take over for MysTTTal.
To add to that:
12/3/2008 Reed Smtih UK 11 No Yes
-58
There are stealth layoffs happening in philadelphia office at RS. I personally know of a Partner in finance dept who was let go about a month ago, an Of Counsel let go from litigation, and another associate let go from a small department in philadelphia. I'm sure there are many others. the Of Counsel and Assoc still appear on RS's website, but the female finance dept Partner is no longer on website. I'm sure more have been shown the door .
TTT is thrown around so much that it loses its significance. Thank you, Reed Smith, for being an actual TTT firm.
56 - Has everyone being let go gotten the word already? And, sorry.
"10/17/2007 Kirkland & Ellis Chicago 6 to 8 Yes No"
Wait, when things are bad(-ish--not *too* bad last fall), cutting the deadweight (however defined by the firm) equals a layoff?
Because I promise you that K&E Chicago encouraged at least 6 to 8 associates to "pursue other opportunities" (or told them "you have no future here") EVERY YEAR since **at least** the mid-90s (before that, the associate pool might have been small enough that the number was less than 6). And they're doing it again this year. It's OCB at K&E, thus not a "layoff" in my mind; not even "enhanced" review.
First.
There appear to be 21 London B&F associates, so they are cutting HALF of the associates in the office . OUCH!
64, ok take it easy no one is taking your doc review from you today. K&E is alive and strong, thanks for the update.
The first Thacher layoffs were in late November/early December.
15/16- the K& L portion of K&L Gates was founded by 4 lawyers who left Reed Smith in 1946
Rumor in the office is BI is about to start layoffs. Hope not true.
well done, 58.
Great chart - but firms are reporting numbers far from the truth. Mayer Brown @ 33????
Multiply by 5 and you are closer to the truth.
67--
I'm not a K&E apologist,* but lumping a standard review-related trimming in with true layoffs is misleading. I don't doubt that K&E would dump many, many associates if it preserved their PPP (or, more importantly, the per share profits). I also expect that they gave somewhat more than "normal" numbers of "behind the class" reviews this year (i.e., *no* bonus), even if those receiving the reviews won't be encouraged to leave.
*This is a firm that, a few years ago, sent a memo stating their dedication to paying "top of market" total comp in a year where bonuses did not match Sidley's in Chicago. They occassionally distribute memos that imply that the firm committee assumes that the associates are morons.
Pennsyvania is a Commonwealth, right? So why is their Ivy League school UPENN State? Shouldn't it be UPenn Commonwealth?
74 - UPENN State and Penn State are two different schools.
74 - UPENN and Penn State are two different schools.
74 - UPENN and Penn State are two different schools.
67: I had a flaring hemorrhoid in Oct 2007. Or was it an anal fistula?
i.e. no one gives a crap about a couple layoffs over a year ago, so relax.
74, you idiot. Wharton is the Ivy league school in PA. UPenn State is the Big 10 school in State College, though you are probably correct that it should be Commonwealth College.
74, you idiot. Wharton is the Ivy league school in PA. UPenn State is the Big 10 school in State College, though you are probably correct that it should be Commonwealth College.
You are all idiots. Wharton is the school of business at the University of Pennsylvania, which is an ivy league school, and is located in Philadelphia, while the Pennsylvania State University is located in State College and does indeed play in the Big Ten. In a somewhat unrelated note, Penn State will be dominating USC in the Rose Bowl in 3 weeks.
81: Oh no, you're going to bring on the wrath of all those many, many USC students who watch ATL, waiting for their chance to convince us that USC isn't a crappy school.
Don't worry, Reed Smith attorney and staff layoffees. You can always apply for a job at Fried Frank. They just made room for you.
That's a good one, 81. Warden wishes it were an ivy league school just like UPENN State wishes it had a chance against USC.
Big TTTen sucks, and so does PSU/USC. The only good football is played in the south or southeast.
Does anyone know how lawyers got through the great depression?
__________________________________________
At the height of the Depression, approximately 50% of the NYC Bar membership had applied for relief.
At least Mystal didn't write "Reed the Read Memo after the jump" - signs of improvement
81:
You are an idiot. There is only one law school in Pennsylvania, it is called UPenn State (Commonwealth), it just has multiple rankings due to a glitch at USNWR. Get with the program, moron.
58 -
Reed Smith's 115 layoffs today are mostly staff. Should be about 11 attorneys.
88 - you are an idiot.
Given the profession we chose, perhaps we are all idiots.
i am an idiot for saying 88 is an idiot, though s/he is an idiot.
So Reed Smith is laying off support staff and some associates in the UK. So what? About as relevant to us as Elie's dinner menu last night.
Just so it is clear: Penn State University has a law school, as does the University of Pennsylvania (the Ivy League school that also is home to Wharton -- which is UPenn's business school). There are several other law schools in Pennsylvania as well.
88 - I don't know what TTT law school you went to, but it's actually called UPenn State Temple at Swarthmore School of Law
I hear there are more layoffs coming; the group that came over from EAPD in NY is about to take a real hit.
96 is stupid -- no chance
Firsttt?
any attorney layoffs in the Princeton office??
Isn't the combined UPENN State Law School known as Widener? They have branch campuses in Phila and State College, but the main campuses are in Harrisburg and Wilmington, right? Otherwise, I have no idea what UPENN Law refers to.
99: not today
58:
8/6/2008 Sullivan & Worcester Boston & NY 7 Yes No
Okay. The University of Pennsylvania is in Philly (it has a law school) and is referred to as Penn only (not UPENN). This is the Ivy League School. I'm an Ivy Leaguer, I should know. Then there is Pennsylvania State University called Penn State. It also has a law school (not Widner or any other school). Its called Penn State's University Dickinson School of Law (my sister went there). They have a campus at Penn State and one in Carlisle, Pa but the two have merged or are merging. It is not in Wilmington or Harrisburg. But the point is, there is "Penn" and "Penn State" - thats it. Not Temple, not Swarthmore, not Widner, not University of Pittsburgh (even though that has a law school in Pittsburgh). I really hope this clears everything up.
103, are all "Ivy Leaguers" as dense as you? I guess it is true what they say about all book smarts and no common sense.
Reed Smith started downsizing and eliminating good hard working souls (employees) on April 11, 2008. At that time they let go around 75 employees firm wide. Employees of 20 plus years with full benefits and salary had their positions eliminated due to “ratios”. They actually put articles in local papers about the entire "ratio concept" to explain the downsizing. The HR Person left out the ages and years of service of those let go. Reed Smith had a big meeting at the time and told all the employees that there would be no more layoffs this year and ratios were good. Now Reed Smith did it again. Corporate America none of us are safe. Do you think we will see Reed Smith on Good Morning America asking the Government for a bail out?
Just about every firm is making cuts in one way or another. It is not pretty, but at least RS is upfront about what they are doing. If in April they said, "this is it" for layoffs, it doesn't mean they are now being greedy or unfair 105. Those who are let go should be taken care of as much as is reasonable, but should not be kept on to sink a ship.
Big Law is a business, and as such all Big Law firms should be making tough decisions to become more efficient. V10, V50, V100...it does not matter. Every firm is hurting. Every business is hurting. Every bank is hurting. The global economy is tanking, and will for the next 18 months or so. So all of you T14/V10 folks, TTT folks and everyone in between realize that we are all getting sacked by this downturn. If you are sixth year at Skadden you will certainly not be building your book of business for your partner track in this economy, even if you hold on to your job. If you are a fourth year at SC you will not be getting a cushy in house counsel job in this economy. If you are second year at (enter any name here) you should be worried too. You get the idea.
RS, MWE, Weil, White and Case, Dewey...this a long list that will continue to grow. This is not partner greed, this about businesses making decisions that will allow them to emerge from this downturn in descent shape. RS should get some credit for being upfront about their business decision and not hiding it like so many old-school, white-shoe firms.
http://amlawdaily.typepad.com/amlawdaily/2008/12/reed-smiths-man.html
106--don't believe that RS is being upfront. They only announced the London associate layoffs if it had not been required by local law. In Philadelphia, attorneys were fired right before Thanksgiving. They were associates, counsel and non-equity partners. They were laid off, but the firm is apparently taking the position that they were terminated for performance reasons, so they are serving up that old crock. Hardly upfront, since the terminations were not announced, even within the office and information has apparently been gotten mostly from the victims.
RS is and remains a great place to work.
Wow, you lawyers seem sad. Maybe you can take this time off to consider a career that contributes to your community...
We could use your brains serving in medicine, engineering, science, or even teaching.
It won't pay as well, but you might like feeling good again...
109 - lawyers contribute just as much to society as any of those other professionals you name. And they often go on to serve their country in other meaningful ways: Jefferson, Lincoln, FDR, etc. (Let's not mention RMN.) Don't be a cynic.
What about Schulte Roth & Zabel? How are they not announcing mass layoffs?
Rumor has it Jenner is bleeding staff out the door a few at a time every few weeks.
Maybe they think nobody will notice that way.
Then again maybe it is just a rumor.
anyone heard from trainees?
good one 108. great place to work, indeed!!
38 was more on the mark
108 - Reed Smith is known wide and far for treating its employees badly. A reputation well deserved!
108 - You must be new and still have your job at RS. The founders of Reed Smith Shaw & McClay would never have treated the human hardworking people in such an evil manner. The founders would not have wanted to destroy peoples lives. The founders appreciated hard working loyal employees. Something went and is terribly wrong at Reed Smith LLC in the current new Millennium! The new RS does not downsize newly hired employees but downsizes older employees with many many years of service, benefits and salary. Many employees who have helped RS arrive to the place in the World they are today have been downsized and let go. Some people may say that RS was just cleaning house but 190 employees world wide says it all. Of course, the new Evil RS will use the Recession to claim innocents.
I really don't understand why attorneys are allowed to bring their secretaries with them only to have existing secretaries at the new law firm laid off - especially since some of the secretaries from Orrick or Thelen have not been known to be high performers and have been overheard bragging about their status in the new firms.
sorry, I meant Thelen and "Heller" instead of "Orrick" - In any event, staff always gets shafted - attorneys do not do the work by themselves!!
116 - Well said! RSSM is almost unrecognizable today. Very sad. Hopefully, in time, the people who have been let go can come to appreciate that they've actually been liberated...as difficult and unfair as it may now seem. There really are firms out there where employees are better appreciated. Good luck to all!
RS has changed in the last 10 years...as it went "Global." Jordan should be commended for the expansion in terms of economincs, but condemed for loss of the culture and the original RS spirit, especially at it's home in Pittsburgh. It is sad. I saw it change and got out years ago.
Violating the WARN Act?