Layoffs

Nationwide Layoff Watch: Dickstein Shapiro

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Dickstein Shapiro sent a memo around the firm yesterday that was the bearer of much bad news. Not only did it announce a salary freeze for 2009, it officially announced layoffs that were conducted on Tuesday. Full e-mail after the jump, but here’s an excerpt:

First, we have made a limited number of reductions in our associate/counsel ranks. Those affected by this decision were informed yesterday afternoon. These are purely economic decisions — this is a group of talented attorneys who have made valued contributions to our Firm.

Spokespeople at Dickstein have not yet confirmed the number laid off, but sources say it was 10 associates and counsel, all in the D.C. office. [Update:The firm now tells us the ten came from both the D.C. and New York offices.] One source says those laid off were told it was “economic-based” — as opposed to layoffs in 2008 that were ostensibly performance-based — but that the firm did take a look at their hours. The corporate group was hardest hit.

One source says Dickstein associates were “pissed.” The email went around at noon yesterday and “glibly” announced layoffs and the salary freeze. Associates would have preferred a firm-wide meeting to announce the news. They were also annoyed to get the news of the freeze 36 hours before their first 2009 paycheck was to arrive (at 12:01 a.m. tonight).

Additional news about Dickstein is pouring into our inbox. One tipster reports overhearing a partner voice concern about Bernard Madoff paying his legal fees and the firm’s ability to take on new associates in 2009.

More after the jump.


So, to sum up: this week, Dickstein (1) laid off 10 people and (2) froze salaries at 2008 levels. One tipster suggests this is not the end of the bad news:

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A senior partner was screaming early this morning around 1 a.m. with Ira (lawyer working on the Bernie Madoff case) [Ed. Note: That would be Ira “Ike” Sorkin] looking on. I sat outside the office and listened. This is when it was heard “we’re not going to be able to afford the new associates.” I think he was talking about making offers for potential ’09 summer associates. I then heard them talk about how no one could pay Madoff’s legal fees and Ira could be spending his time elsewhere.

All speculation and gossip of course, but that’s why we call ourselves “A Legal Tabloid.”

DICKSTEIN SHAPIRO BONUS AND LAYOFF FIRM-WIDE E-MAIL

From: Nannes, Michael

Sent: Wednesday, January 07, 2009 11:32 AM

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To: ALL Associates; ALL Counsel

Subject: Message to Associates and Counsel

Over the course of the past year, we have seen many serious changes to the world economy with resulting impacts on our industry. We had a solid year in 2008, but we have to plan for the future based on the current economy to ensure that the Firm continues to remain financially strong. To that end, I must report that we recently made two difficult decisions.

First, we have made a limited number of reductions in our associate/counsel ranks. Those affected by this decision were informed yesterday afternoon. These are purely economic decisions–this is a group of talented attorneys who have made valued contributions to our Firm.

Second, consistent with our efforts to be fiscally prudent as we weather the current economic conditions, there will be no increase in associate salaries this year. This means that your 2009 salary will remain at its 2008 level.

We regret taking these actions, but our Firm, like many others, is not immune to the economic pressures affecting both our clients and the business interests of the Firm. We believe that these actions, along with our prudent financial practices, the continued strategic growth of our business, and our commitment to our core values, our clients and each other, will ensure the Firm remains successful in the years ahead.

I met with the Associate Partner Liaison Committee yesterday afternoon to inform them that these actions had been taken. Should you have questions, my door is open to you or you may speak with any APLC representative.

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