Archive for February 12th, 2009

And There’s Gonna Be Hell to Pay, At The End Of The Day…

Les Miserables Les Miz.jpg[Ed. note: Non-Sequiturs will return tomorrow at its regularly scheduled time]

* Jesus Tapdancing Christ.

* What the hell just happened?

* I’ll be starting my drinking at Black & White (East 10th St. bet. 3rd & 4th) and I’ll probably end up at Professor Thom’s (14th & 2nd) in case anybody wants some company.

* Here’s a direct quote from today: “I’m panicked I’m going to lose my job — and I don’t even f*****g have a job.”

* Here’s a second, from a federal judicial clerk: “I know the federal budget is set, but this almost makes me want to chain myself to my desk so they can’t make me leave. People at firms must be quaking in their Manolos.”

* And a third quote summing up the carnage: “I love ATL, but I almost threw up when I read today’s posts. IT’S ARMAGEDDON! EVERYONE SAVE YOURSELLLLLLLLLVES!!!!”

* Whenever people talk about the end of The Godfather, they always talk about it from Michael’s perspective. But I think I have a whole new understanding for the tragic life of Mo Green.

* Tomorrow really will be the day after tomorrow.

* Keep hope alive.

Holland & Knight logo.JPGAs we mentioned in an update to our earlier post about Holland & Knight, the firm is now confirming layoffs. From the list of restructuring measures that the firm is undertaking:

• Reducing the total number of lawyers and staff, with approximately 70 lawyers and 173 support staff positions eliminated in the firm’s 21 offices.

The firm also notes that lawyers are being reassigned from slow practice areas.

AmLaw Daily notes that the firm saw a 3 percent decrease in profits per partner last year.

Check out the full statement after the jump.

double red triangle arrows Continue reading “Holland & Knight Confirms 243 Layoffs”

laid off lawyer attorney layoff.jpg

Based on my informal count, some 585 attorneys and staffers were laid off yesterday or today. And that is not counting however many people are hitting the street from Holland & Knight today (we are still waiting on a firm statement of official numbers), or however many 3Ls were essentially fired from Luce Forward today when their offers were rescinded.

As I said earlier, maybe we can explain some of this by a collective attempt to avoid giving people bad news on Friday the 13th. It could also be an attempt by firms to let people go before anybody takes off for the long weekend coming up.

Still, it seems to me like today deserves its own special name. Sure we can call it “black Thursday,” that’s already happened before.

Take the poll below to register support for your preferred moniker. Or supply additional suggestions that the ATL editing crew didn’t come up with.

In the meantime, I’ll be pouring out a forty for the fallen.

Update (5:50): Change that count to 828. The WSJ Law Blog is now reporting that Holland & Knight laid off 70 lawyers and 173 staffers. Check here for our Holland & Knight coverage from this afternoon.

Earlier: Prior ATL coverage of law firm layoffs

epstein becker green logo.JPGApparently, mid-sized firms are not immune from the layoffs today either. We just received word that Epstein Becker and Green laid off 23 attorneys and 30 staff today. Here is the official firm statement:

Given current economic conditions, the Firm is making adjustments to both legal and non-legal staffing levels, resulting in the reduction of 23 attorneys and 30 staff members firmwide. This decision was an extremely difficult one, and was made only after very careful consideration of our options. While these are difficult times for employers and employees in every industry, these actions better position the Firm to meet its clients’ needs and the economic challenges that have presented themselves. The Firm remains on a solid financial footing, with a very loyal client base, and five well-positioned core practices. Further reductions are not planned.

You might remember that back in December, Epstein Becker decided to pay out $0 in bonus. At the time, the firm said:

While we do not make this decision lightly, at a time when many law firms and businesses are engaged in large-scale lay-offs or worse, this decision is, we believe, a moderate response to what are unprecedented circumstances facing our industry.

That was then, this is now. And right now, nobody is safe.

Earlier: Associate Bonus Watch: Epstein Becker & Green Sets Bonuses to Zero

Cadwalader Wickersham Taft new logo CWT AboveTheLaw blog.jpgYou didn’t seriously think we’d get through an entire day of layoff stories without Cadwalader getting into the mix? Legal Week is now reporting that Cadwalader has decided to send 16 of its London employees into “redundancy consultation.

The firm said three lawyers, three paralegals and 10 support staff are subject to the redundancy consultation. A statement read: “Cadwalader Wickersham & Taft has today launched a redundancy consultation with certain employees in its London office, made up of both lawyers and support staff. We regret the potential loss of these talented professionals who have served the firm well. The firm remains committed to London and rebuilding the office.”

Only 3 attorneys! And only 13 staffers!

It’s probably the best news we’ve had all day.

Cadwalader set to cut staff from London office [Legal Week]

Earlier: Prior ATL coverage of law firm layoffs

Philadelphia layoffs and rocky.JPGMultiple tipsters are telling us that the respected Philadelphia based firm of Cozen O’Connor laid off 61 employees today. As we understand it, the breakdown is 55 secretaries and 6 paralegals.

The firm did not respond to ATL’s requests for comment.

Tipsters report that layoffs have been rolling over the course of yesterday and today. It’s possible that not everybody at the firm has been informed of the moves, which would explain the firm’s silence.

The layoffs would be the latest hit to the Philadelphia market, today. We’ve already published sad information about Dechert and Wolf Block.

Hopefully the Rocky statute will still be standing tomorrow.

Earlier: Prior ATL coverage of staff layoffs

Bryan Cave logo.jpgEarlier today, we reported that Bryan Cave laid off 58 attorneys.

The firm just released a statement with the official numbers. In addition to the 58 attorneys, 76 staffers were also let go today. The numbers account for 5% of the firm’s attorneys and 6% of the firm’s support staff:

We have regretfully now concluded that we must reduce our attorney and staff ranks, by 58 attorneys and 76 staff. These reductions represent about 5% of our attorneys and 6% of our staff. The attorneys and staff affected have been advised of this decision.

Bryan Cave also took this opportunity to inform the survivors that salaries will be frozen for all of 2009. Previously, the firm indicated that raises would be made in April, 2009.

Read the full statement from firm Chairman Don Lents after the jump.

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Luce forward.JPGOn Monday, Luce Forward laid off 27 people. Today, we are learning that those are not the only cuts the San Diego firm is making.

Luce Forward has decided to rescind offers to all the 3Ls from their 2008 summer program, and cancel the 2009 summer program entirely. The firm confirmed this information with us earlier today.

The firm had already delayed the start of of 2008 summers to January 2010, but it doesn’t appear that any of them expected Luce would fire all of their incoming first year associates.

I’m not sure how 3Ls will go about finding a post-graduate job at this late stage in this economy. But hopefully things will get better by the time these new lawyers are receiving their diploma.

Good luck out there.

Earlier: Nationwide Layoff Watch: Luce Forward Keeps it Short

Faegre and Benson logo.JPGWhat, you thought you’d be safe from layoffs if you worked in Minnesota? Unfortunately, nobody is safe, at least not today.

We are now able to confirm that Faegre & Benson, one of the most prestigious firms in Minnesota, has informed 29 attorneys that they will be let go. Here is the statement that chairman Tom Morgan released to Above the Law:

We are practicing law in the same challenging economic environment in which our clients are doing business. Like many firms across the country, we are aligning our resources with the anticipated demand for our services and are doing so in a thoughtful and measured manner.

Earlier this month, we offered a voluntary separation package to certain non-lawyer staff. Yesterday, we announced that in the coming months we will be reducing our number of lawyers by 29. We have now met with each of those lawyers.

Remember that earlier this week, Hogan & Hartson offered a buyout package to non-lawyer staff. I wonder if people will think again about taking it, given today’s news.

Never heard of Faegre & Benson? You should have. After the jump we explain why.

double red triangle arrows Continue reading “Nationwide Layoff Watch: Faegre & Benson Proves We’re Talking About Layoffs All Across the Nation”

DLA Piper logo.jpgOn Tuesday we told you that DLA Piper laid off 140 people in the U.K. At the time, we mentioned that the firm declined to comment on whether those cuts would be mirrored in the U.S. offices.

We think the firm just commented. A firm wide statement was just sent to DLA employees:

In light of the deepening economic downturn over the last number of months, we have carefully considered and reduced expenses across virtually all of our operations. While we had hoped for a rebound in economic activity, we believe that a major improvement in 2009 is increasingly unlikely. We value all of our people and are very grateful for their contributions to the firm, and we have worked hard to consider and employ every reasonable measure to avoid lawyer and staff reductions. Our business model factors in some normal attrition in a healthy economic climate, but we have not seen that in this deteriorating economic environment. Given this, and overall market conditions, we have concluded with deep regret that we must reduce our ranks by approximately 80 associates and 100 staff in the U.S..

We understand that a number of first year attorneys were part of today’s cuts.

Read the full DLA Piper statement after the jump.

double red triangle arrows Continue reading “Nationwide Layoff Watch: DLA Piper Lays Off 180″

Holland & Knight logo.JPGYou know how a lot of buildings omit the “13th floor” out of superstition? I’ve noticed that really superstitious people think about the 14th floor as the danger zone, because counting is not a particularly hard thing to do.

I bring this up because tomorrow is Friday the 13th, and I’m just wondering if the invisible hand of market collapse decided that Thursday the 12th was a “better day” for everybody to get fired.

In any every, as many commenters have already noticed, there appear to be massive layoffs at Holland & Knight today. Some of our sources report that as many as 200 attorneys and staffers could be out of a job by the end of the day. Other sources place that number closer to 300.

Holland & Knight has declined to offer us a statement at this time.

Update: According to the WSJ Law Blog, the firm fired 70 lawyers and 173 staff. From a statement: “Today, we began restructuring our operations to better meet the needs of our clients and to take steps to fully respond to the adverse effects of the current economic downturn.”

After the jump, we have additional details from tipsters.

double red triangle arrows Continue reading “Nationwide Layoff Watch: Holland & Knight”

WolfBlock Wolf Block Schorr Solis Cohen.jpgHere’s a little something to break up the layoff news.

On Tuesday, we reported that U.K. firms might look to cut associate salaries (instead of just freezing them) in order to avoid layoffs. In response to our reader poll, 65% of you said that you preferred a salary cut to firm layoffs.

We hope that Wolf Block associates favor cutting salaries more strongly than the ATL readership at large. Because they are all about to take a pay cut.

Multiple tipsters report that Wolf Block chairman Mark L. Alderman informed associates this morning that all associates would be taking a 10% pay cut, effective with the next pay check.

A firm spokesperson confirmed the news a short while ago:

We can confirm that associates will have a 10% reduction in base compensation prospectively. However, we have significantly increased the bonus pool for associates to make their overall compensation more performance-based.

Wolf Block people that we spoke with emphasize that there has been a “significant increase” in the bonus pool. We don’t have those numbers yet..

Of course, unlike our poll, Wolf Block is doing this in addition to firing employees. The firm already laid off 15 associates and staff back in December.

Still, one at least hopes the move helps the firm avoid further layoffs.

Will other firms follow Wolf Block’s lead? Or will Wolf stand alone?

Update (1:42): We can now also report layoffs at Wolf Block that happened earlier this week. Our sources report that 15 staffers and 6 associates were let go on Tuesday.

Another tipster is reporting extra details from the pay cut meeting this morning.

The chairman said that the firm is monitoring status of revenues on a monthly basis.

The implication this tipster got was that more cuts could be coming if things do not improve.

Earlier: International Pay Freeze Watch: Freshfields and the ‘Magic Glacial’ Salary Freeze

goodwin Procter logo.JPGIn case you are wondering, this is going to be a bad day for associates and staff working in Biglaw. We’ve already seen big layoffs at Dechert and Bryan Cave. And we’re sitting on even more bad news (waiting on additional sources). But we just received official confirmation from Goodwin Procter that significant cuts are taking place today.

The firm is telling us that 74 people have been let go. Goodwin gave ATL this statement — which was also sent out to all Goodwin employees moments ago:

After careful deliberation, we have made the difficult decision to reduce our attorney and professional staff work force. We are reducing our associate ranks by 38 people and our staff ranks by 36 people, resulting in a reduction of approximately 4% in each group. The attorneys affected include associates and professional track attorneys and the staff affected include paralegals, secretaries and administrative staff.

People have been suggesting that Goodwin have been conducting stealth layoffs for months, but the firm has repeatedly denied those rumors.

Instead, Goodwin people maintained that the firm would openly announce layoffs, should they occur. Here, it would seem, is that announcement.

Check out Goodwin’s full statement after the jump.

double red triangle arrows Continue reading “Nationwide Layoff Watch: Goodwin Procter Announces Layoffs”

Bryan Cave logo.jpgIt wasn’t that long ago that Bryan Cave acquired Powell Goldstein, aggressively expanding during the recession.

But then came news of a salary deferral. At the time, a Bryan Cave tipster said:

I hope this actually means no layoffs, though, as many junior associates have been really hurting for work. I also hope it means they won’t have to be too stingy with raises when the deferral period ends, since Bryan Cave is not lockstep with the Simpson 160k scale after the first couple years.

Well, today layoffs have come to Bryan Cave. The news first started leaking out on Tuesday. As we understand it, Bryan Cave is letting people go today. Our sources report that 58 attorneys have been laid off.

Some additional details after the jump.

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Dechert logo.JPGWe published a series of reports about stealth layoffs at Dechert last fall.

But given how many firms have laid off attorneys, there is no reason to be stealth about it anymore.

Gina Passarella at the Legal Intelligencer (who has been all over Dechert) reports that 19 attorneys were laid off today across all Dechert offices (subscription):

Dechert has confirmed that it laid off 19 attorneys today across its U.S. offices.

The group included associates and of counsel and several practice areas were affected, though the firm would not specify which ones.

After the jump, let’s close the loop on Dechert’s layoff of 72 staffers back in December.

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Ask the Experts.jpg[This article was prepared by Tricia McGrath, a director in Lateral Link's NY office focusing on partner level placements. For questions please contact Tricia at tmcgrath@laterallink.com.]

When a firm is considering a lateral partner candidate, the firm will perform due diligence on the candidate. The firm will be interested in reviewing materials such as a partner business plan and a lateral partner questionnaire, and will investigate and evaluate the partner and their practice. It is equally important for a lateral partner candidate to conduct his or her own due diligence on a prospective firm. As an equity partner, you will become part owner in a “business” and should verify that there will be an appropriate return on your investment of time, energy, skill and capital.

Of course, neither the firm nor the partner can ascertain with 100% certainty that a lateral relationship will work. However, appropriate due diligence can minimize the risk of failure, as important facts are revealed and future expectations can be managed. While there are many areas in which you’d like insight, three top concerns are (1) the firm’s financials, (2) the firm’s management and (3) the firm’s culture.

The Firm’s Financials

Law firms are businesses and, in the past year, we have seen increasing reminders of this. Many firms have ceased operations because of critical flaws in their operations. As a lateral partner candidate, there are many financial criteria that you should investigate. Admittedly, firms will treat financial diligence differently – some firms will be transparent and others will be opaque. Ultimately, you’d like to understand the overall fiscal health of the firm. Here are some suggestions on particular issues. This is certainly not an exhaustive list.

1. Debt: What amount of debt does the firm have on its books? How is the debt serviced?

2. Litigation/potential firm liabilities: Is the firm currently involved in litigation? Are there potential firm liabilities known to the partnership?

3. Leases: Is the firm involved in long-term leases? Brobeck’s dissolution in February 2003 and forced bankruptcy seven months later has been largely blamed on expensive office leases that led to overwhelming debt.

More after the jump.

double red triangle arrows Continue reading “Ask the Experts: Due Diligence for Lateral Partner Candidates”

Notes from the Breadline Roxana St Thomas.jpgEd. note: Welcome to the second installment of “Notes from the Breadline,” a new column by a laid-off lawyer in New York. To those of you who have been wondering, it is not fiction; we’ve just altered a handful of details to preserve the author’s anonymity (since she’s still looking for work).

If you missed the inaugural post, check it out here. You can reach Roxana St. Thomas by email, at roxanastthomas@gmail.com, or find her on Facebook.

It is December. The office feels empty, abandoned. I have finished every shred of billable work I could dredge up, and, as of a few days ago, exhausted the non-billable possibilities as well. My few pro bono matters have been reviewed and researched thoroughly, and I have no CLE requirements left to fulfill. I wonder idly if I can spend 70 or 80 hours on CLE, and then roll it over for the next few years, like cell phone minutes. Or maybe I can spend some time “organizing client files,” which, incidentally, my cabinets are choked with.

One of our biggest clients, a huge lending institution, collapsed suddenly a few months ago, and the raft of cases that had been keeping me afloat burbled and sank virtually overnight. Most of them, which involve holding companies or subsidiaries that have not yet declared bankruptcy, are not officially dead: they are simply moribund, the paper equivalent of carrion. My office is an abattoir! I think. Though unfortunate, I wonder, does this present billable possibilities? How about “Administered last rites to dying cases; prepared dead matters for cremation and burial; performed obsequies for same”?

I try to tell myself that we are experiencing an early, holiday-related slump, but the truth is that things have been this way — painfully slow — for several months. We are all on edge, and growing progressively more nervous as work gets harder to come by. Associates spend the time not devoted to billable work complaining, worrying, regarding each other jealously, or trying to read tea leaves: why did he (or she) get that assignment? Does everyone know I’m looking for work? Why hasn’t that case, mentioned in passing by a partner, materialized? Where did it go?

Making matters worse, the firm insists that business is booming, although we all know by now that several associates were axed during the last round of reviews (for unspecified “performance-related” reasons) and that, more recently, there has been a spate of staff layoffs, also unacknowledged. At our last litigation meeting, the department head announced cheerfully that things were “great,” and that our group was “going like gangbusters!” In the stunned silence that followed, the associates looked at each other incredulously. Although, with few exceptions, no one was busy, a palpable sense of doubt settled over the room. Maybe, everyone seemed to wonder, it’s just me.

Read more, after the jump.

double red triangle arrows Continue reading “Notes from the Breadline: And You May Ask Yourself – Well… How Did I Get Here?”

Morning Docket 02.12.09

gavel.jpg*Some important notes about Cyber-Bullying from David Lat. [Portfolio]

* Senator Schumer has recommended that Obama choose his chief counsel Preet Bharara as Manhattan’s next U.S. attorney. [The New York Times]

* In other New York news, the state senate confirmed Judge Johnathan Lippman to replace Judith Kaye as chief judge. [Newsday]

* South Africa’s high court ruled that South Africans living abroad should get the right to vote, which could affect likely president Jacob Zuma. [The Los Angeles Times]

* Monday we wrote about extraordinary rendition; yesterday the House and Senate introduced bills that would limit the President’s “state secrets” privilege. [The Boston Globe]

* A state-ordered suspension of jury trials in New Hampshire to save money during the recession could prevent justice from being served. [Bloomberg.com]

* A-rod may not be the only outed baseball star, the California 9th circuit court will soon decide whether the list of 104 players that tested positive for steroids in 2003, will be admissible in court. [MLB.com]