International Layoff Watch: From Russia With Love

Are there stealth layoffs going on in Russia?

A tipster reports:

I would like to bring your attention to the Moscow market. Moscow has a satellite office of nearly every major US firm, and every major UK firm. Most Moscow offices are between 20 and 35 associates, though some British firms are 100 strong. As you might guess the downturn has hurt the Russia market just as bad, if not worse than the US and UK. Law firms have started to fire/layoff associates, though they are not “playing by the rules.” In other words, they are firing people in underhanded ways, because they do not think there is any reputation risk. I suspect this is due in large part to the fact that the vast majority associates at these firms are Russian, and Russian associates do not necessarily read US/UK legal blogs (though some do).

The U.K. blog RollonFriday reports:

Things look just as bleak for Clifford Chance’s Moscow associates as those in London. Russia has been hit hard by the credit crunch, and the ex-pat lawyers who moved there are being mercilessly dispatched.

The firm shed some 30 lawyers in the run up to Christmas as part of an exercise designed to trim the office’s numbers by 20% before year end. Insiders say that associates have been asked to sign agreements waiving their rights under the Russian labour code. Those who agreed to sign apparently only got three weeks’ pay – whereas those said no got up to six months’ salary.

If anybody has more information on the Russian purge, send in your information to ATL.

…and takes the axe to Moscow [RollOnFriday]

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