That is unbelievable. I cannot believe it, but Latham stepped up. 6 months severance?! The interesting thing is there was no delay in the announcement as rumored, so does that mean they were already planning on giving 6 months anyways?

Pretty classy Latham

Holy figgitty fucknuts.

This is going to be the weirdest commute ever.

WOW!

Good luck to everyone.

6 months severance? Plus health insurance? Where do I sign up?

This is a blood bath! Things are so scary out here for an associate; one has to wonder, will I even have a job tomorrow. It's like the Valentine's Day Massacre all over again!

Six months is good, but it seems that a lot of other terminated associates haven't found a job in six months. So it could still mean months without employment.

The legal industry really is changing. And not for the better. I can't believe that partners are responding so drastically and pretending the the boom years weren't just that, and could not have been sustained with or without the "extra" associates.

Interesting that the cap on this is 100k. Don't 4th years make more than 200k?

So does this mean that layoffs will ONLY affect 1/2/3 years?

This is terrrible news, obviously, but is certainly softened by the provision of 6 months severance. For all the crap L&W has taken over the past couple of weeks, the firm deserves credit at least for taking care of those getting shown the door.

Good luck to the unfortunate people being let go today. Here's hoping you all find new gainful employment well before your severance runs out.

Do the 190 lawyers know who they are yet? I thought the conference rooms were booked for today.

SIX MONTHS PAY!

Good for you L&W

daaaaaaaaaaaaaaaaaaaaaaaaaaayyuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuum

Were I a partner there, I'd be absolutely livid. SIX MONTHS SEVERANCE?

Talk about throwing good money after bad! But good news for the associates who get this unbelievable deal.

I know for a FACT that some of my peers will WANT to get laid off today. There are people here that are here purely for the money, and knew going in that they'd only stay 2 years max. For those types of people, this is not bad news at all, considering the severance

SIx months! Wow! that's nice and classy. Good for Latham

FIRST...to predict this post will have at least 500 comments.

"Everyone who is directly impacted by this workforce reduction will be notified personally today, and will be offered a comprehensive separation package, including payment of six months salary (up to total severance of $100,000) plus six months of continued medical coverage (through August 31, 2009), as well as other resources to support this transition."

Two questions:
1) Since it does not specify between staff and associates, does this apply to both?

2) Does this constitute a contractual obligation that cannot be reneged? (i.e., if they try to lump saved vacation days into this package instead of paying them out, can a person who is being fired argue that those vacation days ought to be paid separate from the severance without risking losing the severance offer?)

Thanks and best of luck to all who are laid off today.

14- you suck mooses cock

No, the 190 and 250 don't know who they are yet. It will be happening throughout the day today.

The Market is collapsing.

OH!!!

OH!!!!

I think I just shat my pants, and I don't even work for LW.

FIRST...to predict this post will have at least 500 comments.

21, u suck.

FIRST...to predict this post will have at least 500 comments.

Other firms will follow suit and layoff large percentages...If your firm hasn't already laid off 100+ associates i would be very worried

Can those affected hold themselves out as LW attorneys for 6 mos (i.e. their resume can say they are presently Latham attorneys)? Or does the resume have to say Feb 2009...

Can those affected hold themselves out as LW attorneys for 6 mos (i.e. their resume can say they are presently Latham attorneys)? Or does the resume have to say Feb 2009...

Latham sets the bar for v10 layoffs.

WLRK should come it with a 2 year package and Cravath should do 1 year (although, as most of you suspect Cravath will probably do 3 months)

No. One. Is. Safe.

That's one of the classier "goodbye" memos that I have seen.

In this crazy time in the legal field, I can't complain about making a good salary at a regional firm in a secondary market with a low cost of living. I'll take my lifestyle over this craziness any day.

I know for a FACT that some of my peers will WANT to get laid off today. There are people here that are here purely for the money, and knew going in that they'd only stay 2 years max. For those types of people, this is not bad news at all, considering the severance

AAAAAAIIIIIIEEEEEE!!!!!
The Valentine's Massacre was only the beginning of the end. From now on its gonna be just plain ugly. The worls as we knew it is over. Good luck to all.

21 - the legal market collapsed for those who suck last year. Things are actually stabilized, but at non-boom, hire from the homeless shelter mentality levels.

Biglaw is shrinking and will be 20-30 percent smaller at year end. This is merely right sizing. After all, top 80% percent at shiTTT law school (non-top 10 or so is shiTTT) should have never = biglaw, but it did from 2005-2008.

HTMFH

Now that is change you can believe in.

This makes my 4 weeks notice from K&L look like dog pooh.

Can those affected hold themselves out as LW attorneys for 6 mos (i.e. their resume can say they are presently Latham attorneys)? Or does the resume have to say Feb 2009...

27/28 - wouldn't take a genius to figure out they were laid off. Does it really even matter in this market?

Comment removed by moderator.

#9: I'm just a rodeo monkey, but even I know that the package means that ALL laid off associates collect severance pay for six months OR until they reach $100K. So if (hypothetically) you make $10K/week, you only get paid for ten weeks.

The only thing I thought Bob Dell could have added was that obligatory "all these associates were good associates..." line.

But other than that, classy letter, amazing severance. ESPECIALLY for 1st years. They are getting paid MORE to walk away than they've gotten paid for working

Is it just me or have others noticed that most firms are cutting 10% attorneys (at least in announced layoffs).

Is that a magic number? Should one expect the vast majority of firms to do 10% layoffs whether by stealth or not?

Any idea how many associates in NYC were let go?

Good morning everybody,
It's great to be alive.

Is this a ten percent cut of attorneys?If so, did they already shed another 5-10 percent in stealth? Interesting. A 15-20 percent cut in attorneys says something about their business model, if anything.

If I had a book of business, I'd be scouting opportunities to lateral to a place where staffing was more in sync. The overhead must be insane. Even if the people are laid off, there are a lot of white elephants, here. Offices, build out costs, etc. is still a killer.

Dont worry if you were layed off; OBAMA's going to create "green jobs"

Well I will be darned. ATL called this correctly. Nice work guys.

"The legal industry really is changing. And not for the better. I can't believe that partners are responding so drastically and pretending the the boom years weren't just that, and could not have been sustained with or without the "extra" associates. "-------------The legal industry is changing per the global economy. The partners are responsible for the long term health of the firm. Read the newspapers--the economy has a long way to go before recovery. Partners can't make rain in a cloudless sky. Neither can they continue to spend money on salaries when there isn't enough work to go around. They are a business not a charity.

"Interesting that the cap on this is 100k. Don't 4th years make more than 200k? So does this mean that layoffs will ONLY affect 1/2/3 years?"---------No. This means that the partnership set a "cap" on what they were willing to/could pay out to terminated employees---not that all terminted employees would receive 1/2 years salary--hence the words "up to."

It is a terrible to blow to those who will be terminate today. My thoughts and prayers are with you. However, it is immature and unrealistic to expect that any business continue to overstaff,. Anyone who has spent anytime in the real world (and no the law library doesn't qualify) understand the business implications.

WOW!!!!

Well at least the 20 people who get to keep their job know that they will make partner at LAYOFF & WATTTKINS!!!!!!!

Good announcement. No throat-clearing BS at the beginning about how L&W is a global leader of excellence.

Also, kudos for the severance package. I imagine that it softens the blow quite a bit.

I wouldn't be too worried. If BHO has his way, the unemployed will soon be on the same level as Fortune100 CEOs. Shed no tears for the departed -- socialism will save us!!

36 - stupidest question ever.

HOLY SHIT I'M FUCKED IN THE ASS

Pablo Picasso was never called an asshole.

to any IP folks out there that just got laid off, you may want to take a look at some of the IP boutiques around the country. we are doing quite well and it may be a good place, even if temporarily. we had two "biglaw" layoffs come in two weeks ago and they are doing well. maybe the pay and prestige is not what they want, but its a paycheck, and we appreciate their work.

just a thought.

btw, i am not a fish person or a partner. they are laying off more people than they admit to, so i am not sure how their $160k scale is working out for them.

flyover country IP associate.

Can someone explain why laTTTham is pissing away so much money on these future baristas?

Is it to get some decent PR?

Where is the "ship be sinking" guy when you need him?

Good luck to those affected today. This is what I've been fearing from firms in succeeding rounds of layoffs--double digit percentage cuts in associates and/or sizable cuts at the partnership ranks.

The memo makes it sound like that staff are getting six months also. Sounds unusual and would be even more mind blowing in terms of exceeding market than the generous severance offered to associates.

Ah 27, 28, and 36, doesn't matter much for mainstream legal jobs since everyone in the industry will know. Nonlegal jobs, I it would still be a benefit if they could hold themselves out as still employed for the next 6 months.

Percentage wise (12%) is this still the biggest layoff announced so far?

Awful news - but a new high mark in how to handle such things.

They didn't even need an Acela.

Pillsbury still has FAT CLAMS.

Michael Ray????

Good luck everybody.
--Elie

It's up to $100k, not a payout of $100k. First years who are laid off won't get the whole $100k.

44 - are you retarded? i mean come on man, don't be a moron

JAY-Z AND BIGGIE SMALLS NIGGA SHIT YA DRAWERS

33 Nailed it. People from TTTs like St. John, BLS, Fordham, Hofstra, etc. never deserved the elite big law jobs in the first place.

to any IP folks out there that just got laid off, you may want to take a look at some of the IP boutiques around the country. we are doing quite well and it may be a good place, even if temporarily. we had two "biglaw" layoffs come in two weeks ago and they are doing well. maybe the pay and prestige is not what they want, but its a paycheck, and we appreciate their work.

just a thought.

btw, i am not a fish person or a partner. they are laying off more people than they admit to, so i am not sure how their $160k scale is working out for them.

flyover country IP associate.

Look at the size of my package.

65, don't forget UPenn State

HOLY MOLY. this is the beginning of the end my friends

Any word on whether this will be one lump sum payout (seems doubtful considering the sheer amount of money) or a pay out over 6 months?

For the Latham-haters here: seriously, step back and take a breath. Latham froze salaries (like many others), paid above-market bonuses, did not engage in stealth layoffs and, when they had to lay-off associates, paid more generous severance than anybody out there.

Yes, Latham was one of the first firms to adopt the salary freeze, but that is now arguably market outside NY.

Despite Elie’s prejudices, Latham paid ABOVE-market bonuses. Compare Elie’s articles about bonuses at some firms with higher hours thresholds (Latham’s is 1,900, some of Elie’s loves have 2,000+) and you’ll see he only criticized Latham for applying its customary hours threshold (at the 2,000+ firms, he just focused on the bonuses). Why does this happen: unlike the bullsh!t on this site, Latham is more transparent. They actually disclose the numbers – but does Elie really think a higher percentage of associates at TTT firms with 2,000+ hours thresholds? Of course they didn’t.

No, Latham did not engage in stealth layoffs. It did its normal performance evaluation (same timing, same process, unlike many firms). The numbers were a little bigger, I’m sure, but when times are busy, you keep the more marginal performers that probably should be let go – these aren’t busy times. Of course I understand associates who were counseled out for performance want to believe (and loudly complain) otherwise, but it just isn’t true.

As for today’s lay-offs, they are too bad, but did Latham really handle this badly? Latham waited until it really felt this was necessary – and it paid incredibly generous benefits (the fact that one or two firms has paid 5 months, does not mean 6 months is not generous, as some morons in prior comments last night have suggested). As for how it handled the PR, it’s a bummer that it leaked two days in advance, but would it really have been responsible to rush this out earlier (given need to smoothly transition client matters, and deliver the news to affected associates in a humane fashion)? No.

Six months "plus other resources" is extremely classy. Latham could have gone with the market and they doubled it. Some idiots on here will nitpick (vacation days etc.) but this is impressive.

Certainly this is not an entirely original sentiment, but this action represents the beginning of the end for Latham. Sure it may take awhile, but it will happen. Smart investors buy when there is blood on the streets; smart law firms position themselves so that they can meet client demand (i.e. make as much money as possible) during boom times, but also survive without significantly knifing associates and staff during bust times. And it is not as simple as just "re-hiring" when things pick up. You think 5 years from now the top 2Ls won't remember this? And it is a prestige hit that makes the firm look terrible when compared to the rest of its so-called (but no longer) competitors. The 6 months severance (which isn't really for more senior associates given the $100K cap) doesn't buy that prestige back, it just makes Latham look stupid for overpaying and hastens its demise.

Condolences to the Latham associates and staff who today will suffer the consequences of the partners' short-sightedness while the partners sleep well tonight with millions stashed away that they earned from the associates/staff's hard work during the good years.

Six months "plus other resources" is extremely classy. Latham could have gone with the market and they doubled it. Some idiots on here will nitpick (vacation days etc.) but this is impressive.

Good luck to those affected. First to say that Elie will take his usual douche-like approach call future 3 month severances Half-Latham.

Is something going on at Wachtel too? The link for this page seems like it was made for both Wachtel and Latham, but Latham was confirmed first.

Anyone?

I want to know when the partners (equity and non) and counsel are going to be let go. Letting an associate go saves the firm chump change in comparison to letting a non-producing counsel or junior partner go.

MIchael Ray???

Is something going on at Wachtel too? The link for this page seems like it was made for both Wachtel and Latham, but Latham was confirmed first.

Anyone?

Has there been a confirmation on office breakdown leaked yet? Rumor is Palo Alto, NY, DC, and LA are being hit the hardest.

L&W needed to cut costs in NYC even more dramatically than many other firms. And it may not be over for them. In NYC by some of their internal estimates, they were toying with a F09 year end attorney employment tally of about 55% of the attorneys they had as of 1Q08.

Good luck. The ride may not be over yet.

how many in LA???

We're not hating on Latham because of these tragic events. We're hating on Latham because it attempted to hold itself out as an elite firm when it never was. Now it is paying the cost of trying to keep up with the big boys.

"Latham froze salaries (like many others)". Not like any of the firms during the bubble it claimed as its "peers".

this will be the first 1000 comment thread I have ever seen.

to any IP folks out there that just got laid off, you may want to take a look at some of the IP boutiques around the country. we are doing quite well and it may be a good place, even if temporarily. we had two "biglaw" layoffs come in two weeks ago and they are doing well. maybe the pay and prestige is not what they want, but its a paycheck, and we appreciate their work.

just a thought.

btw, i am not a fish person or a partner. they are laying off more people than they admit to, so i am not sure how their $160k scale is working out for them.

flyover country IP associate.

71 tone down the defense. I don't have that bad an opinion of Latham. However, your post makes you sound like either a marketing troll who doesn't know better that you should disguise your post or a Latham lover drinking the kool-aid. You're just drawing out the flamers like the UPenn people who don't realize it's a gag.

weeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee

good luck to all who get the axe today. classy move latham--hopefully other firms will follow suit.

80- Not sure how people would know now whether Palo Alto (firm's Silicon Valley office is not in PA, but whatever) or LA are getting hit hard. It's not even 6 yet on west coast

The administrators of this board should delete 38's comment, which is stupid, racist, cowardly, vile, and ... oh yeah, stupid. Did I mention stupid?

L&W to 190!

what becomes of counsels and partners? without leveledges they would not support themselves.

this will be the first 1000 comment thread I have ever seen.

Is Latham still V10? V20?

Think people if you are a higher up you will max out at 100K very soon.

Hey is it just me or 2 months ago or so there was a thread going on in which people were saying "well they're freezing salaries because they will never lay anyone off" and there was a no layoffs promise... 2 months ago, seriously!

I can understand if you are poor businessmen and cant foresee your needs a year in advance... but 60 days? WTF?

As much as I have been a Latham hater in the past, I have to admit this was handled pretty well (aside from the leak a few days in advance).

A severance package of up to 100K? If you live frugally, you could stretch that to cover 2 years of unemployment (many, many people (including attorneys) live off of 50K a year). By that time, the economy should pick up again.

So as much as I am horrified at the sheer number, kudos to LW for the severance package. And good luck to everyone affected today.

the most frightening thing is what their economic forecasts must look like if they are laying off these kinds of numbers, and paying 6-months severance. The only way these numbers are justified is if the firm truly sees a paradigm changing economic future in front of them. i do think the lock-step biglaw market salary system for summer associates and first and second years was simply not in keeping with any sound business models in any other areas, and there was no real justifying it. (clients don't give two sh*** where your idiot associate went to school so long as the work is good, and all too often some 3.0 GPA from NYU does garbage work and isn't worth the paper his JD is printed on... the whole justification for overpaying first years was "attracting talent" but firms still ended up paying Fordham grads that same amount, when clearly they probably would have taken the job for half the money.. the whole system is stupid.)

The ABA needs to trim 10% of law school seats, MINIMUM, to protect the practice of law. Yes, there is a consumer benefit to lots of attorneys, but we have passed over the tipping point, and we are going to end up in a place where the market is saturated, lawyers get paid crap to do their jobs, and all the smart people stop coming to the table. we'll be left with Cooley and Hofstra grads running our legal system, which is not a pretty picture. GET ON IT ABA.

71 - Thanks - So how long have you been a partner at LaTTTham anyway?

what becomes of counsels and partners? without leverages they would not support themselves.

this will be the first 1000 comment thread I have ever seen.

this will be the first 1001 comment thread I have ever seen.

this will be the first 1003 comment thread I have ever seen.

this will be the first 1002 comment thread I have ever seen.

this will be the first 1004 comment thread I have ever seen.

this will be the first 1005 comment thread I have ever seen.

man, how dumb are some of you. not really saving that much money (as some have pointed out) - could have kept these people around for 6 months and gotten some $ out of them.

what they're doing is cutting out some people so the ones behind can actually GET TRAINED. that way, when things do pick up and those 1st/2nd/3rds are 2nd/3rd/4th/5ths, they actually know how to do something.

this will be the first 1005 comment thread I have ever seen.

what becomes of counsels and partners? without leverages they could not support themselves.

obviously, the laid off ASSOCIATES should COMBINE their separation PACKAGES and START SMALLER FIRMS. they can hire directly from the laid off staff. this could be the spark that gives our industry a couple of NEW FIRMS led by MODERN, TALENTED lawyers. bravo latham!

71 - Thanks - So how long have you been a partner at LaTTTham anyway?

Run. You fools.

Also, fuck you ATL for banning my IP. too bad i got TOR, bitches.

71 - Thanks - So how long have you been a partner at LaTTTham anyway?

65, why should graduates of those schools not be abel to work in biglaw? maybe you should stop being such a dumb fuck

Latham proves they are far superior to douche firms like Dewey & LeBoeuf. Bravo. Classy.

101, keep reposting and we'll be there in no time.

65, why should graduates of those schools not be able to work in biglaw? maybe you should stop being such a dumb fuck

the ABA MUST cut law schools. MUST. the market is flooded, which will mean a race to the bottom for the legal profession. i'm not just talking salaries. crappy lawyers from crappy schools, who will now be competing in small law with smart grads from smart schools, will end up starting 1000's of solo practices, flooding the legal system with garbage lawsuits from garbage clients... the esteem of the legal professionw will fall, the legal system will be crippled by the onslaught, and life as we know it will never be the same.

to any IP folks out there that just got laid off, you may want to take a look at some of the IP boutiques around the country. we are doing quite well and it may be a good place, even if temporarily. we had two "biglaw" layoffs come in two weeks ago and they are doing well. maybe the pay and prestige is not what they want, but its a paycheck, and we appreciate their work.

just a thought.

btw, i am not a fish person or a partner. they are laying off more people than they admit to, so i am not sure how their $160k scale is working out for them.

flyover country IP associate.

99: nice use of the latham thread for random anti-NYU troll

118 - good point, but the ABA is too busy saying outsourcing work to the third world is ok....

Has anyone heard about the rumore that Latham may be laying off associates today? Thank goodness I work at a top notch firm like Buchanan Ingersoll and I don't have to worry about these things.

It's sort of mind blowing to me. It's 6am on the West Coast. There are a ton of people on there who are getting fired today who are still sleeping and hoping that the chatter this week was wrong or won't be that bad. Good luck to all.

I've never been laid off, and I am sure it would be a huge blow. And considering the job market, finding a new job would obviously be a source of incredible anxiety.

But I find myself wishing I was at Latham today. Six months severance is more appealing than I ever thought it would be.

To my LW colleagues that do not get laid off today, please do not begrudge those who do get notified today and receive 6 months of severance. Remember how worried you were yesterday and relieved you are today to not be on the list of those who are cut.

- NY associate (clue: not eligible to sell back PTO)

I predict 10,000,000 comments.

The fact that they had to make cuts this deep indicates it is a very poorly run firm. And there is nothing "classy" about partners canning a couple hundred billing units in this economy so that partners don't take big hit to ppp.

Regardless of the number of people laid off and the amount of severance being provided, it's utterly pathetic how management, given the non-stop drumbeat over the years about management transparency being essential to the "culture", mishandled the communication and implementation of the salary freeze, "stealth" layoffs, partners' unit reductions and now economic layoffs. What a fantastic "culture" we have when partners, of counsels, associates and staff get 90% of their information about their firm from this web site.

I'm a 1st year. I went to bed last night hoping for

1) 6 months severance

2) If 6 months severance, that I'd be laid off.

Hopefully 2 comes true

15 Posted by guest | Permalink
Friday, February 27, 2009 8:27 AM

I know for a FACT that some of my peers will WANT to get laid off today. There are people here that are here purely for the money, and knew going in that they'd only stay 2 years max. For those types of people, this is not bad news at all, considering the severance
__________________________________________

1. Everybody is there "purely for the money"; nobody works for a big law firm because they want to make the world a better place.

2. This is good news if you have another job lined up or can get another one easily. Otherwise, it is not good news, and not what anybody with a single functioning brain cell would hope for or plan.

Forget 'Bloody Thursday" this is Bloody February. Not enough talk here about how partners should be taking a cut in pay. Most of these firms have PPP of $1-2M. Seeing how the CEO of Citibank will be making $500k this year, maybe partners should be getting the same and not aiding the destruction of our economy so willingly.

121 - 188 here. I have been saying for a long time now that the ABA is the most profoundly idiotic group ever. they put articles about outsourcing to india in their magazine as a cover story, like it was some cool great new thing. their idiot reporter never even touched the whole legal issue of unauthorized practice of law ("supervising" my a$$ to anyone who claims the US side is evaluating all the outsourced work). the legal profession needs to push for a housecleaning at the ABA. We need new leadership.

i am all for globalization and free trade, but law is not your typical service or your typical good. get those foreign doc review firms OUT OF HERE.

You heard it here first:

There is a layoff code - you can predict with some degree of accuracy those firms that are more likely to engage in layoffs in THIS ECONOMY.

The primary factor is not leverage. Leverage is secondary. The primary recognizable factor is having MORE THAN ONE PARTNERSHIP TIER.

I've done the analysis. Latham just confirms the story. Leverage, without regard to partnership structure, is almost meaningless for predicting layoffs. Leverage WITH regard to partnership structure is more meaningful.

Layoff likelihood:
1) Firms with more than 1 partnership tier are more likely to lay off associates;
2) For firms with more than 1 partnership tier, those firms that are highly leveraged will be more likely to lay off and will be more likely to lay off more.
3) For firms with only 1 partnership tier, associate leverage borders on insignificance.

This analysis includes only firms in the top 100 firms on Vault. This analysis excludes staff and staff attorneys.

You heard it here first.

I predict 10,000,000 comments.

On my way to work. Not sure what to hope for. I was ready to leave in a year.

6 months is A LOT of free money.

yeah, getting laid of 2 years ago with 6months-1year severance would be phenomenal. however, in this economy who the hell would be stupid enough to want to get laid off from a 160-200k job?

even with the good background you needed to get latham in the first place you won't be able to find a good job right now.

65 you are a moron. Someone taking a full ride to St. Johns made the right move instead of being in 120,000 of debt from NYU

No partners affected, despite all the dead wood out there. Same old story: Associates get fired to keep partner profits stable. If I were shown the door today, I would certainly take the cash but not give Latham any credits for it. It is just a marketing expenditure (though highly welcome) and doesn't change the fact that this may be the beginning of an ugly, ugly time for all those affected.

Couldn't they have done two or three months severance and laid off fewer people?

Doomsday for Dechert today...announcement should be coming shortlly...

Here's a little gem hidden in the Am Law article. 3Ls scheduled to start in the fall are being offered 75K to defer their start dates to sometime in 2010. I would jump on that like a pornstar on dick.

118- the ABA will never do that because 1) it makes too much money from the pathetic cooley law schools of the world and 2) they know that law schools will do just what the medical world did, setup shop in the bahamas. think about it, some tard gets a crap degree in a law school in the bahamas and then gets an LLM to "scrub" their crap school. look around, there are a lot of these toilet lawyers in biglaw firms. might as well keep the schools stateside and make money off of them. plus, at some point in time, despite what the demosocialistcrats say, the market will correct itself.

From Am Law: In addition to the layoffs, Latham is offering its incoming class of first-years, originally scheduled to join in the fall, the option to defer start dates until sometime in 2010. The firm will pay those who defer $75,000 to cover that period.

135 - not when you're still unemployed in 7 months, and you find a lump in your testes and realize your health insurance is run out.

Work hard and ye shall be rewarded with a mediocre bonus and more work. Sit on your hands for a year and ye shall receive manna from heaven

I want to applaud Latham's efforts, but I think they may have just dug an even bigger hole. I have a number of good friends there who have been killing themselves for Latham for years. I spoke to one last night and he made it clear that if Latham did give out this type of severance, he planned to start dodging work like crazy. And who can blame him? Unless Latham follows up with some type of voluntary termination plan, even at a lower severance rate or limited to slow departments and offices, they are going to have some bitter associates on their hands. The folks who would leave voluntarily may be few and far between in this market. But, if that option is put on the table, at least those who remain will feel like they had made a choice to still be at Latham, rather than feeling like they are being punished for working while others played in '08.

Jesus Christ...I am going back to bed.

Bob, I predict 10,000,001 comments.

I got laid off from LW today and I don't even work there.

Which offices are affected?
Which offices are affected?
Which offices are affected?

It seems sort of silly to still be reporting that there were "stealth layoffs". Why would the firm conduct stealth layoffs, when it is well aware that every firm to do that gets its name dragged through the mud and it was almost certainly aware that a month later it would be laying off 12%?

What about the European offices? Why are they getting a free pass? Their pace numbers are just as bad, if not worse, than the slow U.S. offices.

"Ship be sinking guy" = Latham associate

ship be sinking guy = Latham associate

For all those saying how generous and classy latham is, remember, this is almost exactly how CWTTTT handled their layoffs last summer. LaTTTham=CWTTT

Getting another job at a law firm is going to be impossible. Even given 6 months or a year. There are just too many laid off associates out there now. Lucky for these guys they have this cushion, but 3 or 6 month severance is no replacement for a job through this year and next.

Latham's Vault rank is going to drop to TTT teritory because of this. Any questions now about them being overrated?

The severance is generous, sure, but it's arguable whether it's the most generous package ever, at least depending on the level of associate: In the summer layoff, Cadwalader gave out 5 months, but didn't cap it. That definitely meant a lot to layoffs at more senior levels.

The severance is generous, sure, but it's arguable whether it's the most generous package ever, at least depending on the level of associate: In the summer layoff, Cadwalader gave out 5 months, but didn't cap it. That definitely meant a lot to layoffs at more senior levels.

Good luck guys! I know the feeling. As a laid- off banker I can tell you that it sucks out there for all of us. But damn that package is SWEET!! And I am guessing that you got your bonuses already. Stop whining and travel the world for a year … you got the money ... and when you get back to the states you can get a job again (maybe).

154- Yes, those laid off (esp juniors) will find it near impossible to ever return to BIGLAW.

But there were some people who only wanted to stay at Latham (do BIGLAW in general) for 1-2 years max. Then they wanted to move on to much smaller firms, gov't, etc. For those people, this is not such a bad deal at all

90- There has been a internal discussion for quite a while - this is not a blindside.

obviously, the laid off ASSOCIATES should COMBINE their separation PACKAGES and START SMALLER FIRMS. they can hire directly from the laid off staff. this could be the spark that gives our industry a couple of NEW FIRMS led by MODERN, TALENTED lawyers. bravo latham!

150 - European Employment Laws (particularly in Germany) are much stricter in terms of employee protection, that's all. It is true that pace is poor in many of those offices, especially small offices with a strong focus on PE.

"sometime in 2010."

Speculation as to what this means? August? September?

I heard they're notifying the laid off associates by simply removing their names from Latham's website.

190 associates is a scary number. Wonder whether we'll see even bigger numbers from Jones Day, White & Case, DLA, etc.

So why was this story co-authored by Lat and Elie? My guess: Lat didn't trust Elie with the story so he wrote it and had Elie get the donuts.

Former Lathamite here who moved to a smaller, less prestigious firm 6 months ago (felt good then, feels amazing now). The real issue is that this will NOT be sufficient to stop the bleeding. Actual collected billed hours are less than 50% pace (excluding pro bono, deadbeat clients, failed deals, etc.). There will have to be additional layoffs. I'll bet that before 2009 is over Latham will layoff more than 400 associates.

obviously, the laid off ASSOCIATES should COMBINE their separation PACKAGES and START SMALLER FIRMS. they can hire directly from the laid off staff. this could be the spark that gives our industry a couple of NEW FIRMS led by MODERN, TALENTED lawyers. bravo latham!

100k cap for whom? L&W paying out or the associate taking home?

Former Lathamite here who moved to a smaller, less prestigious firm 6 months ago (felt good then, feels amazing now). The real issue is that this will NOT be sufficient to stop the bleeding. Actual collected billed hours are less than 50% pace (excluding pro bono, deadbeat clients, failed deals, etc.). There will have to be additional layoffs. I'll bet that before 2009 is over Latham will layoff more than 400 associates.

Moscow office affected.

154- Yes, those laid off (esp juniors) will find it near impossible to ever return to BIGLAW.

But there were some people who only wanted to stay at Latham (do BIGLAW in general) for 1-2 years max. Then they wanted to move on to much smaller firms, gov't, etc. For those people, this is not such a bad deal at all

154- Yes, those laid off (esp juniors) will find it near impossible to ever return to BIGLAW.

But there were some people who only wanted to stay at Latham (do BIGLAW in general) for 1-2 years max. Then they wanted to move on to much smaller firms, gov't, etc. For those people, this is not such a bad deal at all

169, surely you can't be serious.

man, how dumb are some of you. not really saving that much money (as some have pointed out) - could have kept these people around for 6 months and gotten some $ out of them.

what they're doing is cutting out some people so the ones behind can actually GET TRAINED. that way, when things do pick up and those 1st/2nd/3rds are 2nd/3rd/4th/5ths, they actually know how to do something.

E-mail that just went out to incoming first years:

As you may know, today we announced a layoff affecting associates, paralegals and staff. This was an extremely difficult decision, but is necessary because of the dramatic downturn in the global economy. I attach the email that was sent to all personnel to provide further information.

In light of these challenging conditions we are planning to defer our start date for the Class of 2009 until mid-December 2009. We are also offering an alternative for those who are interested in further deferring their start date until October 18, 2010. This Deferral Program provides an opportunity to use the intervening period to work at a public service organization or pursue academic, political or other interests. We have arranged a number of opportunities with public interest and community service organizations, but participants may also make their own arrangements. Participants will, however, not be permitted to work at another law firm prior to joining us. Participants will receive $75,000, consisting of a stipend of $62,000, payable as one lump sum on October 15, 2009, in addition to the firm's standard $13,000 Bar stipend (which will be paid upon graduation as is customary). The number of openings in this Deferral Program will vary by office and the deadline for all applications is March 31, 2009. As we may need to limit the number of participants, we encourage early applications.

We realize that you will likely have questions about this Deferral Program. Please contact any member of the Recruiting Committee listed below for your office to discuss it further. If you decide that you would like to participate, please let Debbie Clarkson and a Recruiting Committee member from your office know no later than March 31, 2009.

John Tang
Global Recruiting Chair
Latham & Watkins LLP

154- Yes, those laid off (esp juniors) will find it near impossible to ever return to BIGLAW.

But there were some people who only wanted to stay at Latham (do BIGLAW in general) for 1-2 years max. Then they wanted to move on to much smaller firms, gov't, etc. For those people, this is not such a bad deal at all

Latham & Watkins: America's Most Firingest Law Firm

could the board retards please stop double-posting. it is not rocket science you idiots.

but but I thought an anonymous Internet survey of junior associates was the determining measure of "prestige" and we all know that the more prestigious firms are better.

could the board retards please stop double-posting. it is not rocket science you idiots.

Does anyone know how large Latham's summer class is going to be this year? Hopefully it will be much smaller. If not, this was just terrible, terrible planning, even for a law firm.

Wow! 6 months?!? Let's do the math: 2 month paid vacation, 3 months paid looking for a job, 1 month double salary. I would have volunteered for that.

NY to 200!!

(layoffs per firm)

"Wow! 6 months?!? Let's do the math: 2 month paid vacation, 3 months paid looking for a job, 1 month double salary. I would have volunteered for that."

Is it fair to assume that you'll find a new job in 3 months, given the state of the economy?

Mid-december start date for incoming associates or deferral until October 2010.

110 might have been the most sage and practical advice on this board's comments in a very long time...

187=110

getting laid of 2 years ago with 6months-1year severance would be phenomenal. however, in this economy who the hell would be stupid enough to want to get laid off from a 160-200k job?
__________________________________________

Exactly. The reality is that most of those laid off will have to live off that severance for the next six months, then whatever remains of their UI, then move home to their parents' basement.

Only an idiot would be suggesting this is "sweet" and that this is the time to blow money on a vacation. 158 is a perfect illustration of the dim-witted "thinking" common to the finance sector that got us all into this mess.

190 associates is a scary number. Wonder whether we'll see even bigger numbers from Jones Day, White & Case, DLA, etc.

188 = dead fucking wrong

lol... It's the end of the world as we know it.

TIME TO LOOK FOR JOBS IN EUROPE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Mid-December start date for incoming associates or deferral until October 2010.

The ship be sinking...

"How far can it go?"

The Latham is the limit...

As the Dow approaches the 6,000's....

I am not just in it for the money, but I have to be a little jealous. Any of the rest of us could be fired next month and get the usual (and lavish) 3 months severance or less. And the fact Latham is melting like an ice cream in the sun makes that scenario much more likely now. Every lawyers, even the partners, now have to ask whether LW was really that poorly run, or whether LW's position represents the truth about the market in 09-10.

Today's magic number is "13": the number of train rides it would take Acela Bob to "announce" the Latham layoffs.

you don't automatically get 6 months of pay. if you get hired in a month, you get 1 month's pay, etc. It's not like these people that got laid-off just got handed $100K. geez, people.

No siren on this one? Really? What does it take?

176 has to be a hoax. October 2010?

191, turn your sarcasm detector on.

Thanks, 180.

Sorry to those that got laid off...I feel your pain. To the V10 snobs, suck it...

Wow! I was recently laid off by another big California firm. I received nothing like what Latham gave out. Not even a classy e-mail. A lot of Latham people are going to be very unhappy today, but you/'re still in much better shape than most of us.

This is ridiculous. That much money is just a waste. Why the hell wouldn't you want to be laid off from Latham right now? 6 months is awesome. Run off to Ecuador or Peru, and live like a kind for years. Or do some public interest work for 6 months and keep honing the skills.

Latham is just throwing money down the toilet. This just confirms what a bunch of retarded monkeys they really are. This is just a big fat wad of cash in hopes that the Vault ranking doesn't drop to the depths of hell.

Anyone think it will actually work? Why would you want to stay and work for absolutely nothing, when you could be at home doing nothing and getting paid the same amount of money?

What a stupid move by Latham.

176: not a bad gig.

100 -- good point, but i wouldn't put much stock in freakin latham's ability to forecast the economy or their business requirements -- they obviously suck at it! i just think they're panicking.

despite latham's moves, the economy could easily turn the corner this august!

65,

This is a truly stupid comment. The best associate in my group went to one of those schools, as did one of the best partners I've ever worked for. I'm sure there are hundreds of associates at the firm who scored higher on the LSAT - but here's a secret - good judgement, diligence and the the ability to consistently impress and exceed the expectations of those you work for (be they partners or clients) are significantly rarer and MUCH more valuable than being "smart."

Smart is a dime a dozen at a good firm. Associates you can trust to impress your clients and consistently do a great job on everything are much harder to come by. And when the opposing counsel at a good firm went to a crap school, you better watch out, because they're not sitting accros the table due to thier pedigree - they're there because they're a really good lawyer.

This is ridiculous. That much money is just a waste. Why the hell wouldn't you want to be laid off from Latham right now? 6 months is awesome. Run off to Ecuador or Peru, and live like a kind for years. Or do some public interest work for 6 months and keep honing the skills.

Latham is just throwing money down the toilet. This just confirms what a bunch of retarded monkeys they really are. This is just a big fat wad of cash in hopes that the Vault ranking doesn't drop to the depths of hell.

Anyone think it will actually work? Why would you want to stay and work for absolutely nothing, when you could be at home doing nothing and getting paid the same amount of money?

What a stupid move by Latham.

i guess it's time to start that line of homemade jewelry or a homenade skincare line. all the reality TV stars are doing it. apparantly stringing beads from Michaels, or mixing olive oils from whole foods in soap bottles, is a lucrative line of work.

Comment removed by moderator.

Latham's deal for incoming associates is awesome - if they can offer that kind of coin, they can't be in that bad of shape.

208: latham stupid for offering big severence packages. or inhumane for offering low severance packages... i guess it's a no-win situation.. for me i'm happy they were more generous so when i get laid off hopefully my firm will follow

latham's generosity might keep any other firms from announcing layoffs today. nobody wants to be compared with this idiotic severance levels (idiotic or not, if you're laying off 200 and giving three weeks severance, do you really want to layoff on the same press day? it will get repeated in the news because it will be record numbers AND your cheapness (despite that it is the smart move) will be forever harangued in online message boards and newspaper articles.

No siren?

198, could you explain the severance terms better for us?

Can anyone comment on how the severance works? If you find a job before the 6 months is up, does your severance get cut off?

71 - Please spare us this marketing sh*t.

213: if you haven't gotten the memo by now, firms really don't give a shit about PR and what some random 0L thinks about their hiring practices. they are trying not to dissolve.

Dear Associates,

HAPPY FIRING DAY!

Today is the day you realize that you will be poor. Very poor. You will never be able to pay off your massive law school debts. Your family and friends will pity you, others will laugh at you. You will never enjoy the career or success you dreamed of in law school.

But you can overcome this setback. There are still jobs to be had in retail. There is no shame in stocking shelves for a living.

For the men among you, this means that you will probably have a hard time finding a wife or girlfriend. For the women, you can still latch on to a man with a job. But be prepared to spend a lot of time on your back, as this is the only way you can "add value" now.

Sincerely,

The Partners who did this to you.

Change has come to America.

Yes we can!

Latham's deal for incoming associates is awesome - if they can offer that kind of coin, they can't be in that bad of shape.

I predict 1,000,000 comments.

214 - But everyone knew this was coming, right?

218 - wait and see. i predict no other big name layoffs today. if they had only done 3 months it would have been a bloodbath today.. the same bandwagon effect of Bloody Thursday.

207: AMEN

This gives a whole new meaning to "New York to 190."

I miss the good ol' days of 2007....

Dude, how can anyone blame Obama? He's been in office for like 3 weeks. It's obviously Bush's fault more than anyone.

could the board retards please stop double-posting. it is not rocket science you idiots.

i hate that we're laying people off, but I am very proud of the above-board way management handled this round, and the 6 mo. package is very generous and humane.

if you get laid off, book a flight to the bahamas or mexico, go sit on the beach for a week, get drunk, and figure what to do next. things will get better. they always do.

What about the partners? I think the emailer in the post was onto something, yet the commenters seem fairly silent on this issue.

Somewhere, the Count weeps.

I wish I had a big cock.

How did it take 91 comments for someone to come up with "L&W to 190!"?

Anyone who thinks Latham is the only V10 firm that will conduct layoffs is kidding himself. ALL WILL FEEL THE PAIN WITHIN TWO MONTHS.

Any news on K&L Gates yet?

The richest one percent of this country owns half our country's wealth, five trillion dollars. One third of that comes from hard work, two thirds comes from inheritance, interest on interest accumulating to widows and idiot sons and what I do, stock and real estate speculation. It's bullshit. You got ninety percent of the American public out there with little or no net worth. I create nothing. I own.

This gives a whole new meaning to "New York to 190."

I miss the good ol' days of 2007....

How did it take 91 comments for someone to come up with "L&W to 190!"?

hey 189, on behalf of us who got next to nothing when we got sacked i would like to cordially invite you to suck it. sincerely yours 158

Hey, good job staying classy, 38.

234 - have your eyes checked. the question/debate was whether latham will be the only one TODAY.

Maybe somebody should sue them. Any lawyers around here?

Six months severance? Way too much. These kids have been getting severance for the last six months (getting paid w/o work). I'd be upset if I were a partner there.

2 months tops.

They will never find a job in 6 months. Smaller firms have been cherry picking prior layoffs and are already set, and there are not enough Gov't positions and the few that there are are getting tons of resumes. Remember that there will likely be even more layoffs to come. 401k's are half what they were a year ago. If you don't have savings or know a rain maker, its the kiss of death.

Is this typical? Or is this because Latham is managed like a frat house?

Don't worry guys, everything will be all better and all the jobs will come back once Obama raises taxes on law firm partners and their clients.

Yes We Can (go to 15% unemployment)

199 / 214 - Isn't the siren for surprises? We knew this was coming.

Also, it might not be very "respect[ful] of [the] process."

Maybe somebody should sue them. Any lawyers around here?

so where can we see a list of people laid off so we can check for our friends?

Latham has led the market in everything shitty, but now they have led in something somewhat good.

Still, LaTTTham sucks.

Hey, good job staying classy, 38.

yikes!

hey 189, on behalf of us who got next to nothing when we got sacked i would like to cordially invite you to suck it. sincerely yours 158

They will never find a job in 6 months. Smaller firms have been cherry picking prior layoffs and are already set, and there are not enough Gov't positions and the few that there are are getting tons of resumes. Remember that there will likely be even more layoffs to come. 401k's are half what they were a year ago. If you don't have savings or know a rain maker, its the kiss of death.

246 - fist yourself.

You're probably one of those free market morons who thought Lehman should absolutely go bankrupt. Shouldn't you be licking Hannity's balls, not scanning the internet?

LOL, i miss count Layoffula. We are all doomed.

While 6 months is a great package (though $100k would be a lot less than 6 mos of more senior associates' salaries and vacations), it isn't so great to make you want to be out of a job, unless you are pretty damn certain that you are next or you were planning to jump ship to a guaranteed job in the short term.

With a glut of junior associates on the market, it will take a while for most to find jobs. It won't really matter that you have a top10 school -- those credentials will be a dime a dozen, and you have no real experience to speak of. Diligence work and no training -- nothing to bank on...

For those who manage to survive today, what are that chances that they get laid off within the next 3 months, and at that point given only the 3 months "standard" severance (since there won't be this crazy bad press which prompted Latham to double the 3 month severance they in all likelihood originally planned for)? That would be really terrible.

Any word on how the layoffs are being distributed? Is NYC taking a disproportionate hit? Or are other offices like DC equally affected?

258- I would be worried about that. What if, God forbid, the economy gets much worse and Latham ends up in further trouble?

If there are layoffs in 3 months with a severance of 3 months, you are going to feel pretty shitty.

f-cking unbelievable...

$75k to sit on your ass a year? SOLD.

110: Awesome, awesome idea. I just added your comment to my "Wall of Inspiration." Kudos to you.

How does L&W's severance prevent other firms from laying people off today? If you're a firm, and you're planning layoffs, and you were ready to do them today, then you probably only heard about Latham's severance deal a few hours ago. Big effing deal. People are still going to compare severance deals whether these other firms conduct layoffs today or Monday or whenever. Plus it would mean moving layoffs into the next month, revising the books and standing everyone down in the meantime. All for what? So that a bunch of replaceable 0Ls don't flame you on their blog? You're not going to hire them anyway - the economy's in the toilet and there's no work.

131: That is the funniest thing that I have read on this site in ages!

I wish I had a big cock.

Am enjoying how L&W has twisted and retracted their previous promises to all their employees. Let me see if I remember correctly, I believe at the last employee conference in January it was said that L&W did not forsee any layoffs in the future. They have an assortment of words they use to describe the pink slip...... They knew for some time what strategy they had to take. Cutbacks began last year. Some employees were escorted to the front door and their last paycheck was stuffed in their hand as L&W kicked their ass to the curb.
A former employee...

i turned down wachtell for latham b/c i wanted CA. bad move ITE?

Yes, 110, start a firm with no clients that specializes in document reviews.

170 Posted by guest | Permalink
Friday, February 27, 2009 9:20 AM

Former Lathamite here who moved to a smaller, less prestigious firm 6 months ago (felt good then, feels amazing now).
__________________________________________

I did the same thing (left bigger, more prestigious firm for smaller, less prestigious firm in summer 2008). And yes, it felt right then, and feels 100x times more right today. To all those laid off, best of luck.

Is the severance being paid in a lump sum or will the laid-off associates be paid out over a six-month period? Hopefully it's a lump sum, in case the firm goes belly-up before six months is up. I'm curious about how firms are handling the severance payments.

I think there might be a better than 50% chance that is going to happen. Rumor is that they might want to squeeze in another round of cuts before the summer associates start, if need be, which is part of why these cuts happened so soon after the "performance" cuts.

It is not a lay-off, looks like a reorganization.

This sets a good and bad precedent. Bad that now other big law firms will feel free to make deep layoffs after Latham paved the way. But way to set the bar ridiculously high for severance. Also if the the 3L OPTION to defer start date with 75 K to tide them over post is true: Good God! That sounds amazing. Hope my firm will offer me an option half as nice when they push my offer to 2010.

Also 65 - die in a fire. Im T10% in non T25 school. So you did better on the LSAT. It might surprise you but in the real world lawyers dont sit around and do logic games all day. Did I mention die in a fire.

33 and 65, you are morons. I've seen douchebags from Harvard and Columbia get crushed by kids from Pace, New York Law, and Hofstra.

255, I'm confused, are you trying to tell me that raising taxes on law firm partners will:
1. create new associate jobs, or
2. reduce the number of associate jobs?

It's one or the other. I can't seem to find the point in your ad hominem attack bringing up Lehman for no reason.

TYIA, 246

243 - good one.

My condolences to you that got laid off. I just did also. Here's some advice whether you got laid off today or are concerned that you might be in the future. Go through your personal email and possessions NOW. Start bringing things home. Ask what do I need to do so that if I had to leave in 1/2 hour that I would be ready to do so.

I wanted to go through my files and get my insurance info, my personal banking info, my credit card info, photos, etc. I was told that I could not take any of it, that they would do it for me. They sent the security guard to my office. The security guard kept apologiizing as I know him.

Think about it. If this is how departing employees are treated, then you should have real concerns that your personal effects and info will not be treated well either. I am very serious about this. Do not believe that you will have access to get your own personal things upon your departure. It was kind of freaky actually.

So, what do you do if you are a prospective Summer Associate? I would have serious reservations. Have a Plan B. Honestly. I was lied to, as were many people at the firm. I had good reviews (met/exceeded expectations on my last review).

What do you do if you are a Recruiter at a Law School? Have reservations about this place.

If you are working here, seiously download all your kudos letters now. In my exit interview, after all the blah blah about the economy, I asked if they give references? They said no. Just confirm dates/title.

So start downloading all your kudos emails today. Seriously, do it TODAY.

The severance letter says that they will burn your outlook calendar and outlook messages to a CD and send it to you. But, I don't trust them. It is far better that you have a copy of your own Outlook calendar and your references with you now. Keep your vital info on a USB drive. Feel free to email me. I'll be checking back on ATL..

This was not the treatment that you would expect from the self-proclaimed hallowed L&W. Please folks I repeat. Take your personal info home, have all your contact info, etc. ready to go now.

I wasn't taking any L&W info. I was just taking my personal effects with me. They are projecting their "evilness" onto others.

Good luck everyone.

HOLY SHiiiiiiiiiiiiiiiiiiiiTTT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

experiencing shortness of breath....

cold sweat...

207 - Well said.

Which first year wouldn't take $75k to "volunteer" for a year.

WTF?

272 here, that comment was a response to 258 and 260.

For all of you 2Ls out there, here is the official policy on this year's summers (from a memo circulated internally on 2/23):
"....the consequent reduction of summer associates will be based on the 30/70 application to extant offers."
In essence, 30% of existing summer associate offers will be honored, the rest will not unless there are subsequent rejections from the 30% pool. Now, you need to figure out whether you would be considered in the top 30% or not!

272, from what I've heard you are right. There will most likely be another round before the summer associates start. Its a wait and see kinda thing. But its already being discussed.

My condolences to you that got laid off. I just did also. Here's some advice whether you got laid off today or are concerned that you might be in the future. Go through your personal email and possessions NOW. Start bringing things home. Ask what do I need to do so that if I had to leave in 1/2 hour that I would be ready to do so.

I wanted to go through my files and get my insurance info, my personal banking info, my credit card info, photos, etc. I was told that I could not take any of it, that they would do it for me. They sent the security guard to my office. The security guard kept apologiizing as I know him.

Think about it. If this is how departing employees are treated, then you should have real concerns that your personal effects and info will not be treated well either. I am very serious about this. Do not believe that you will have access to get your own personal things upon your departure. It was kind of freaky actually.

So, what do you do if you are a prospective Summer Associate? I would have serious reservations. Have a Plan B. Honestly. I was lied to, as were many people at the firm. I had good reviews (met/exceeded expectations on my last review).

What do you do if you are a Recruiter at a Law School? Have reservations about this place.

If you are working here, seiously download all your kudos letters now. In my exit interview, after all the blah blah about the economy, I asked if they give references? They said no. Just confirm dates/title.

So start downloading all your kudos emails today. Seriously, do it TODAY.

The severance letter says that they will burn your outlook calendar and outlook messages to a CD and send it to you. But, I don't trust them. It is far better that you have a copy of your own Outlook calendar and your references with you now. Keep your vital info on a USB drive. Feel free to email me. I'll be checking back on ATL..

This was not the treatment that you would expect from the self-proclaimed hallowed L&W. Please folks I repeat. Take your personal info home, have all your contact info, etc. ready to go now.

I wasn't taking any L&W info. I was just taking my personal effects with me. They are projecting their "evilness" onto others.

Good luck everyone.

God. It just occured to me that most of L.A. hasn't gotten to work yet.
:(
--Elie

For those associates at BigLaw firms which had layoffs in December and January, beware. LW has just made it more comfortable for them to implement the second round.

Latham just announced that the associates who are being laid off failed their mandatory steroid test.

So with the bigger drop in PPP, when do the layoffs start at CSM?

epic fail....just shut the firm down

283: so you're saying the summer associate class for this year is 100 people, but they're going to reduce that class size to 30? or are they only going to make permanent offers to 30 of the 100 summers?

Latham: laid off associates escorted out by security, severance capped at 100k

Cadwalader: laid off associates got to continue to use their offices for a week, and there was no cap on severance.

Cadwalader>>>>>>>>>>>>>>>>L&W

This is so sad. Best of luck to everyone.

Just before the ship cracked in half, management sent as many associates it could on liferafts to work at clients free of charge. I wonder if those fuckers are toast.

IS THE SEVERANCE LUMP SUM OR INSTALLMENTS? IF AN ASSOCIATE FINDS A NEW JOB IN A COUPLE OF MONTHS DO THE PAYMENTS STOP?

272, from what I've heard you are right. There will most likely be another round before the summer associates start. Its a wait and see kinda thing. But its already being discussed.

So they are not letting the associates pack up their own offices? Cold.

when will dickstein shapiro start their layoffs?

somebody should sue them...anyone know a good lawyer?

272, from what I've heard you are right. There will most likely be another round before the summer associates start. Its a wait and see kinda thing. But its already being discussed.

Here is how it happens in NY. You get a call from Kevin Blaugh, and asked to go to his office. You get handed a severance package. How to unwind and transition your matters is discussed. They are professional and humane but also a bit distant.

The phrase used was "among first and second years, the selection was almost completely random."

Ask me how I know.

So they are not letting the associates pack up their own offices? Cold.

My condolences to you that got laid off. I just did also. Here's some advice whether you got laid off today or are concerned that you might be in the future. Go through your personal email and possessions now. Start bringing things home. Ask what do I need to do so that if I had to leave in 1/2 hour that I would be ready to do so.

I wanted to go through my files and get my insurance info, my personal banking info, my credit card info, photos, etc. I was told that I could not take any of it, that they would do it for me. They sent the security guard to my office. The security guard kept apologiizing as I know him.

Since I wasn't treated well, I have concerns that my personal effects and info will not be treated well either. I am very serious about this. Do not believe that you will have access to get your own personal things upon your departure. It was kind of freaky actually.

So, what do you do if you are a prospective Summer Associate? I would have serious reservations. Have a Plan B. Honestly. I was lied to, as were many people at the firm.

What do you do if you are a Recruiter at a Law School? Have reservations about this place.

If you are working here, seiously download all your kudos letters now because you will not be given a reference letter from here. I just thought of it now.

The severance letter says that they will burn your outlook calendar and outlook messages to a CD and send it to you. But I don't trust them. It is far better that you have a copy of your own Outlook calendar and your references with you now. Keep your vital info on a USB drive. Feel free to email me. I'll be checking the boards today.

This was not the treatment that you would expect from the self-proclaimed hallowed L&W. Please folks I repeat. Take your personal info home, have all your contact info, kudos emails and letters, etc. ready to go now.

Good luck everyone.

A classmate of mine, who will be a summer associate at Latham this summer, received a call from Latham last week and was told that nothing has changed for the summer.

Calling you out on your 100% free market/tax-obsessed economic theory is to point out that raising taxes on law firm partners back to their Clinton years (when times were real, real shitty, weren't they?) is not going to single handedly alter the associate job market up or down (cause lowering taxes is definitely going to bring back those laid off securitization associates...). The problem is there is no demand for legal services right now, certainly not at their present cost. Will lower taxes impact this demand? Sure. Will government involvement in this economy, that has to be paid for somehow (contrary to your boy Cheney, deficits do matter), also impact that demand? Definitely.

118, don't blame the lower-ranked law schools for your misfortune. Having worked with lawyers who graduated in the top 5 from the vast array of law schools that you would characterize as TTT and lawyers who were clearly not even in the top quarter at your cherished T14, I would take the former ANY DAY. You don't hear those people complaining about $160K salaries, and hey, here's a bonus, they actually learned some law in school.

This sets a good and bad precedent. Bad that now other big law firms will feel free to make deep layoffs after Latham paved the way. But way to set the bar ridiculously high for severance. Also if the the 3L OPTION to defer start date with 75 K to tide them over post is true: Good God! That sounds amazing. Hope my firm will offer me an option half as nice when they push my offer to 2010.

Also 65 - die in a fire. Im T10% in non T25 school. So you did better on the LSAT. It might surprise you but in the real world lawyers dont sit around and do logic games all day. Did I mention die in a fire.

YOU AIN'T SEEN NOTHING YET. Its going to be a Bowling Alley at Sidley with all the heads that will be rolling.

My condolences to you that got laid off. I just did also. Here's some advice whether you got laid off today or are concerned that you might be in the future. Go through your personal email and possessions now. Start bringing things home. Ask what do I need to do so that if I had to leave in 1/2 hour that I would be ready to do so.

I wanted to go through my files and get my insurance info, my personal banking info, my credit card info, photos, etc. I was told that I could not take any of it, that they would do it for me. They sent the security guard to my office. The security guard kept apologiizing as I know him.

Since I wasn't treated well, I have concerns that my personal effects and info will not be treated well either. I am very serious about this. Do not believe that you will have access to get your own personal things upon your departure. It was kind of freaky actually.

So, what do you do if you are a prospective Summer Associate? I would have serious reservations. Have a Plan B. Honestly. I was lied to, as were many people at the firm.

What do you do if you are a Recruiter at a Law School? Have reservations about this place.

If you are working here, seiously download all your kudos letters now because you will not be given a reference letter from here. I just thought of it now.

The severance letter says that they will burn your outlook calendar and outlook messages to a CD and send it to you. But honestly, I don't trust them. It is far better that you have a copy of your own Outlook calendar and your references with you now. Keep your vital info on a USB drive. Feel free to email me. I'll be checking the boards today.

This was not the treatment that you would expect from the self-proclaimed hallowed L&W. Please folks I repeat. Take your personal info home, have all your contact info, etc. ready to go now.

Good luck everyone.

IS THE SEVERANCE LUMP SUM OR INSTALLMENTS? IF AN ASSOCIATE FINDS A NEW JOB IN A COUPLE OF MONTHS DO THE PAYMENTS STOP?

Condolences to all those who are getting laid off today. It's amazing that in such a short period of time ATL has gone from being fluff to a newsletter of lay-offs. Best of luck to all.

Re 285, that's good advice.

Before leaving my firm for a clerkship, I would print out every email telling me "great job," etc. Then, I highlighted the name of the partner or client who sent it, and put it in a file.

This probably sounds ridiculous/neurotic, and I never had cause to use them, but it certainly gave me peace of mind to keep a file folder full of partner/client praise just in case I had to question any performance reviews. I'll do it again when I return to private practice, assuming there is a private practice to return to.

Dow (back) to 14,000!!! (Please?)

I have a very hard time believing that laid off associates are being escorted out by security. Staff, perhaps. Lawyers? No chance.

YOU AIN'T SEEN NOTHING YET. Its going to be a Bowling Alley at Sidley with all the heads that will be rolling.

So with the bigger drop in PPP, when do the layoffs start at CSM?

Here is how it happens in NY. You get a call from Kevin Blaugh, and asked to go to his office. You get handed a severance package. How to unwind and transition your matters is discussed. They are professional and humane but also a bit distant.

The phrase used was "among first and second years, the selection was almost completely random."

Ask me how I know.

And if you think this week's news is bad, all I can say is that you folks who work at Jones Day - grab the toilet paper in the bathroom now, because pretty soon there's going to be a lot of people crapping their pants!

313 - i don't know though - 309 doesn't seem like it was written by staff...

Someone answer 310 - I want to know that, too. Lump sum or installment payments? The Lathamites may not know their arrangement yet, but those who have been laid off from other firms, please chime in on your severance payment method.

I cannot believe it, but Latham stepped up. 6 months severance?! The interesting thing is there was no delay in the announcement as rumored, so does that mean they were already planning on giving 6 months anyways?

Pretty classy Latham

Now that Latham & Watkins have announced their cuts, this will unfortunately open the floodgates among the other top tier firms to do the same. This is the excuse many top firms will use to pare back and not take a public relations hit in the process.

Here is how it happens in NY. You get a call from Kevin Blaugh, and asked to go to his office. You get handed a severance package. How to unwind and transition your matters is discussed. They are professional and humane but also a bit distant.

The phrase used was "among first and second years, the selection was almost completely random."

Ask me how I know.

Remember Stalag 17 where the POW's dug a tunnel and discarded the dirt two pocketfuls at a time around the prison yard to deal with the enormous amount of dirt from the tunnel without having it detected by the guards? Just take a a few items home every day for a month and you'll never be noticed by the security gremlins. Be careful on mass downloading from your hard drive or the network because most IT systems are set up to flag downloads above a certain level per day

Now that the legal profession is no longer a viable option for making money, I think it's time laid off attorneys consider taking their severance money and starting weed delivery services.

Here is how it happens in NY. You get a call from Kevin Blaugh, and asked to go to his office. You get handed a severance package. How to unwind and transition your matters is discussed. They are professional and humane but also a bit distant.

The phrase used was "among first and second years, the selection was almost completely random."

Ask me how I know.

LATHAM AND COCK attorneys should relax -- they will land on their feet. Having a resume that reads LATHAM AND COCK will make them very attractive to potential employers and cocklovers.

324: I'll bit. How do you know?

Latham layoffs:

This is not the end. This is not even the beginning of the end. It is simply the end of the beginning. - WLC

305, the Clinton years had high economic growth, but you may have realized that there were two major bubbles going on. Notice how the 1920s were great for the economy too, but the 1930s Republicans didn't really try to bring up that fact, for good reason?
The tulipmania years were great for the Dutch economy!

If raising taxes does not have a significant negative impact on the economy, then why oh why are Obama and his advisers cutting taxes and planning to delay the tax hike until after 2010? Oh that's right, they said they didn't want to cause a significant negative impact on the economy.

Anyone know how it happens in NY?

316/322/324 - If I ask you how you know, will you stop with the multiple posts? Okay, here goes: How do you know?

325 -- You're Kevin Blaugh?

So I just the visit from two partners.

I guess I can deal. $85,000 is a lot of money.

Comment removed by moderator.

LATHAM TO 190!!!!!!!!!!!!!!!!!!!!!!!!!!

Comment removed by moderator.

330 -- When this thread hits 1,000 comments, yours will still be the best.

Comedy is all about timing.

Summer program confirmed. 10 weeks. Normal pay.

It is not a cool time to be in this profession, at any level, from the most senior associates down to the incoming law school classes of 2012.

That being said, we must look forward to try to learn from these events.

How can we assist the unfortunate class of 1Ls interviewing next year?

What kind of information should they be looking for to determine how healthy these firms are?

If Latham, everybody's dream firm, can do this, how can a 1L distinguish between firms in a meaningful way and make a truly educated decision?

Or maybe its all just a crapshoot...

What practice areas were affected? Was it mainly corporate?

I'm glad I work at Paul Hastings.

Game over, man. Game over.

Wish I had gone to Latham, instead of the Half-Latham TTT firm that laid me off.

Latham has offered their staff a six months severance package. It is the same deal for everyone laid off.

Come on, 341, no one is glad to work at Paul Hastings. Well, perhaps you are glad to work there until the next round of layoffs in a week.

Latham has offered their staff a six months severance package. It is the same deal for everyone laid off.

I was told that people may be contacted by partners whether or not they are getting the axe. In one case it is to tell you that you are safe and in the other case it is to provide the severance package. Can this be confirmed?

So which V10 or V20 firm will be the first to follow Latham's lead?

Latham has offered their staff a six months severance package. It is the same deal for everyone laid off.

348, Cravath, Swaine & Moore.

It is also a lump sum package.

It is also a lump sum package.

No layoffs at K&L. postponed until May.

MINE EYES HAVE SEEN THE GLORY OF THE COMING OF THE LORD!

138 makes an excellent point. Where are all the overpaid and underworked partners, esepcially the recent lateral partners? Why aren't they being shown the door or otherwised de-equitized? While LW handled the severance very well and deserves kudos, they are eventually going to have to do some serious pruning of the partnership ranks.

Oh and 65, you can DIAF. SJU and proud of it. And I've run rings around some of your ivy league stuffed shirt colleagues and will continue to do so.

Income partners are next.

I shudder to think what that professional liability premiums would be if/when folks take advice like that in comment # 110

Good luck to all. News like this is hard on everyone in the industry.

FUCKING LOL

PWN PWN PWN PWN PWN PWN PWN PWN PWN

FUCKING LOL

PWN PWN PWN PWN PWN PWN PWN PWN PWN

I agree with the advice of 295. Get all of your personal items together.

For neurorotic reasons of my own, I've kept a folder of praise/emails/notes from partners and clients. I've also tossed in there work product that I've written in the event that I have to make a mad dash for the door and need something for a future job search. Luckily, I haven't needed it yet. I keep it all hidden in a folder in my office called "taxes."

One thing to think of is using in-house counsel at a client (someone you know, who knows your work and likes you) as a reference.

Good luck, all!

this means nothing. whats the point of 6 months severence when the checks will start bouncing!!!

I agree with the advice of 295. Get all of your personal items together.

For neurorotic reasons of my own, I've kept a folder of praise/emails/notes from partners and clients. I've also tossed in there work product that I've written in the event that I have to make a mad dash for the door and need something for a future job search. Luckily, I haven't needed it yet. I keep it all hidden in a folder in my office called "taxes."

One thing to think of is using in-house counsel at a client (someone you know, who knows your work and likes you) as a reference.

Good luck, all!

2L's are dead. all these 1-year deferred associate start dates for 3L's means that there will be at least 50% less offers to 2L's at the end of this summer. 2009 will be the "Endless (no offer) Summer".

7 of the 14 associates laid off in Chicago were first years. While the severance is generous, this is utterly unfortunate. I wish those laid off the absolute best.

http://www.mtvmusic.com/talking_heads/videos/54247/nothing_but_flowers.jhtml

good luck

I wonder if law students are finally realizing there are other factors to consider besides Vault rank.

those laid off should thank atl for their severence. latham was shitting their pants thinking about the comments that would result if they didn't offer something good!

Seems to me that Latham probably does not imagine paying "up to 100,000" -- which would be high senior associate range to most of these people. Most are lower rank associates so this cap is just a "belts and suspenders" clause for the smaller group of senior attorneys.

Does anyone know if your severance is cut-off when you find a new job. That would be a huge caveat. Show me an attorney that would roll the dice of not accepting a new job because they think there will be one for them in 6 months.

Do we have a new term: "Full" or "Half" Latham Severance (like Half-Skadden).

giving me lots of money = classy

not giving me lots of money = tacky

Slow income partners should be next. Talk about reducing costs. Just look at big London firms like CC, A&O or Linklaters. Why not keep a talented associate (I am sure there are a few who are given the adios today) and get rid of the low-performing high-earning partner instead?

While the six months severance is generous, it almost certainly increased the number of people fired today (in order to reach the firm's targeted cost savings through layoffs). That's probably why these layoff numbers are higher than any of the predictions given over the past couple of days. Personally, I think I would prefer a shorter severance period and a higher likelihood of retaining my job.

No severance cut off if you find a new job.

They send a lump sum check in a week.

http://www.mtvmusic.com/rem/videos/9826/it_s_the_end_of_the_world_as_we_know_it_and_i_feel_fine_.jhtml

too soon?

If they think cutting this many people and offering them 6 months severance is saving money, then they are predicting pretty bad year(s) to come, right?

http://www.mtvmusic.com/u2/videos/10270/with_or_without_you.jhtml

a little more apropos

The number of laid off attorneys increases to 240 when you add the 50 stealth layoffs (25 in NY) exactly a month ago.

http://www.mtvmusic.com/green_day/videos/46712/time_of_your_life_good_riddance_.jhtml

of course this one might make you cry

Would these payments be subject to norma income tax, or be tax-free?

Would these payments be subject to normal income tax, or be tax-free?

If they think cutting this many people and offering them 6 months severance is saving money, then they are predicting pretty bad year(s) to come, right?

Elie's a fat turd. ATL broke some amazing stories while his butterball ass was off crisping in the sun. Lat, time to cut the fat and no need to be as generous as Latham.

353 - Any details on K&L? How do you know?

It's taxable income.

This is bullshit. 6 months pay for doing nothing other than being one of the worst 10% of associates at a firm with mediocre hiring standards. I hope Obama taxes the hell out of their asses.

to 357: you're CRINGING? don't be so DENSE. liability premiums aren't prohibitively high for newer attorneys. hell, the STATE BAR PLAN is available to people STRAIGHT OUTTA LAW SCHOOL. quit dragging down the discussion with MISINFORMATION ARISING FROM YOUR OWN LACK OF CONFIDENCE. then you wish people good luck. you can go back to cringing now.

It's taxable income.

the severance amounts are taxable - no way to offer these amounts without subjecting them to income tax.

Something about this generous severance package does not seem to add up. Let's say that the layoffs were evenly divided between first years, second years and third years, that would mean:

63 1st year associate severance packages at $80,000 totaling 5,040,000;
63 2nd year associate severance packages at $87,500 totaling 5,512,500; and
63 3rd year associate severance packages at $95,000 totaling 5,985,000.

Add this all up and they have committed approximately $16.5m in severance payments to the attorneys (to say nothing about the staff or medical benefits). Maybe I am just paranoid, but that strikes me as a large sum of money to spend on former employees who can do nothing for your business. I would bet that the severance package is not as straightforward as it would seem in this memo, or that the terms of the severance may change materially at some point down the road. If I was offered this package I would read the terms of the severance agreement very carefully.

Great analysis 388 -- definitely read the fine print. The most prudent course of action would probably be to reject the severance and walk away with $0.

to 357: you're CRINGING? don't be so DENSE. liability premiums aren't prohibitively high for newer attorneys. hell, the STATE BAR PLAN is available to people STRAIGHT OUTTA LAW SCHOOL. quit dragging down the discussion with MISINFORMATION ARISING FROM YOUR OWN LACK OF CONFIDENCE. then you wish people good luck. you can go back to cringing now.

@323: That was the Great Escape, not Stalag 17.

Also, seems to me that the growing talent pool of laid off associates ought to just start their own shops and trying to peel off business from their old firms. Get cheap office space and undercut the competition.

388 - Don't forget that Latham froze salaries so the 2nd years are being paid severance as 1st years, 3rd years as 2nd years, etc. But do your numbers include other benefits, most importantly medical insurance?

42- I've heard that the number is almost 90 associates in NY alone, so clearly the biggest percentage from that office. That's got to be around 30% of NY associates?

A sad, sad day for all involved, as well as those who are keeping their jobs (for now) but have to sit through a disastrous day.

@323: That was the Great Escape, not Stalag 17.

Also, seems to me that the growing talent pool of laid off associates ought to just start their own shops and trying to peel off business from their old firms. Get cheap office space and undercut the competition.

388 here, I didn't advocate any course of action, I am just pointing out that all the talk about how classy this severance is could be premature. This might not be the 'reach around' that everyone is making it out to be.

378 - On what possible basis would a lump sum payment from your employer be tax free?

Code section we-feel-sorry-for-you?

388: don't forget to include health insurance paymanets in your calculations.

388: don't forget to include health insurance payments in your calculations.

As usual, a number of the comments posted so far display an incredible amount of pigheadedness, self absorption, inhuman disregard for the feelings of others and idiocy. But this line in 118s comment takes the cake for outright stupidity.

"the esteem of the legal profession will fall"

In case you were unaware, the "esteem of the legal profession" could not be much lower. The average American probably views an Indian call center worker with more "esteem" than the average American lawyer, so outsourcing more of our profession might actually improve the "esteem" with which we are viewed....

Lol, 389. If it's a lump sum, then who cares. Sign the release, take your cash, and move on. The better question is - how can Latham afford it?

firms jettison associates to boost profits per partner. the profits metric is a key recruiting tool for attracting future talent in the partnership ranks. associates, largely viewed as fungible at all ranks, are thus being sacrificed on the alter as firms position themselves for partner grabs down the line.

now is the time for young lawyers to start their own shops and compete with the old dinosaurs. every big firm started with a couple to a handful of ambitious attorneys.

number 400 sucka

ellie is a piece of shit LW hater...

How much time are laid off associates being given to clear out their offices?

@401 Ha Ha

How much time are laid off associates being given to clear out their offices?

number 406 sucka

Two 3L’s from Seton Hall are driving along the Jersey Turnpike towards Manhattan. The woman in the car looks up from her copy of The American Lawyer as the man slows the car down.
Woman: “What are you doing?”
Man: “Isn’t that Robert Dell, the managing partner of Latham & Watkins, by the side of the road? Maybe he needs a ride into Manhattan.”
Woman: “He has an axe!”
Man: “But he is a BigLaw partner. Maybe if we do him a favor, he will offer us jobs at Latham.”
Woman: “He has an axe!”
Man: “I’m sure there’s a good reason for it.”
The man stops the car, rolls down the window.
Man: “Excuse me, Mr. Dell, but what’s with the axe?”
Dell: “It’s a . . . . . letter opener.”
Man: “Hop in!”

firms jettison associates to boost profits per partner. the profits metric is a key recruiting tool for attracting future talent in the partnership ranks. associates, largely viewed as fungible at all ranks, are thus being sacrificed on the alter as firms position themselves for partner grabs down the line.

now is the time for young lawyers to start their own shops and compete with the old dinosaurs. every big firm started with a couple to a handful of ambitious attorneys.

401 - that cracked me up.

Can anyone answer 403? My firm is no doubt taking notes on how to run a layoff.

378-379 is an idiot.

There is no way LW partners will not be impacted with termination. That will come later.

401 you are a kjoker

@401 Ha Ha

Sympathies to all of those, staff as well as associates, who were let go.

L&W deserves credit for providing six months' severance, which is generous. If you still have a job, though, be glad you're working. Six months can go by very quickly.

This is clearly far more than an ordinary recession. Law firm layoffs are secondary impacts from the simultaneous collapse of the real estate, banking, securities and insurance industries over the past several months. The employment picture in those fields is far worse than in the legal profession. Those who advocated deregulation and facilitated the cross-industry mergers, NINJA loans, CDOs, and default swaps which destroyed those industries have a great deal to answer for. Those who suggest that the solution lies in further deregulation, or in additional tax cuts for high-bracket individuals, have no credibility whatever.

@401 Ha Ha

190 sounds like a lot but Lantham has over 2000 attorneys. That's less than 10 attorneys from each of their offices. Unless the layoff hit a few offices harder than most I'm not even sure folks in office will be able to tell who's gone unless someone gets cut their close to. Of course morale will be down but that will have more to do with folk checking blogs and relaying rumors than the actual lay-off because that package is kind of sweet.

378-379 is an idiot.

Fresh post at the top of the page:

http://abovethelaw.com/2009/02/is_latham_setting_precedent.php

401 you are a kjoker

Quite clearly Latham will pee in your face and then turn around and tell you its sweet milk.

416 - the number in NY is closer to 90 attorneys and twice as many staff, so I think people will be able to tell who has been laid off. It's a bloodbath there.

number 400 sucka

number 400 sucka

190 sounds like a lot but Lantham has over 2000 attorneys. That's less than 10 attorneys from each of their offices. Unless the layoff hit a few offices harder than most I'm not even sure folks in office will be able to tell who's gone unless someone gets cut their close to. Of course morale will be down but that will have more to do with folk checking blogs and relaying rumors than the actual lay-off because that package is kind of sweet.

416 - these layoffs hit the U.S. offices only. The non-U.S. offices make up something like 30% to 40% of attorney headcount at Latham.

This is such BS. It makes me hate lawyers even more (I am a lawyer) for being such f-ing weenies. They are risk averse followers; there are so few leaders out there in big law.
Instead of revamping the management structure, thinking outside the box, and perhaps firing the actual partners who are not bringing in business and not making smart managerial decisions, firms choose to lay off associates simply because that's what everyone else is doing. It's f-ing pathetic.
I think the silver lining is that this is no way an indicator of what's still in store with the economy. It's just an indicator of a firm's well-being, and the thick headedness of the decision makers.

How is $13000 supposed to get the incoming 3Ls who don't take the option to December? Pretty tough to survive on that paltry amount when you have to move to a new city...

Part of what is going on is that firms are working hard to strengthen their income statements and business models in order to improve their competitive position to attract laterals with significant portable business in currently active practice areas. Deleveraging associate support in weak areas, and at the inexperienced entry level, is important to that strategy. It's not simply about parners wanting to make $1.5 mil pre-tax rather than $1.2 by cutting expenses; it's also about positioning the firm to "acquire" new revenue sources..

Enron - Anderson - Bear Stearns - Lehman and now LATHAM AND DOGSHIT. Firms that we were once proud but have since imploded violently

Enron - Anderson - Bear Stearns - Lehman and now LATHAM AND DOGSHIT. Firms that we were once proud but have since imploded violently

@427 - true that ! my vices alone eat up about $4k a month

i prefer latham and cock to latham and dogshit; thoughts?

number 408 sucka

number 408 sucka

Lawyers are not being escorted by security from their offices (only staff). Lawyers have up to 1 week to use offices and transition matters.

Severance is lump sum check in a week. You keep it even if you find a job.

$75K 3L deferral is also lump sum, which you keep even if you decide to take another job. The caveat about not working at another firm just means you can't come back to your Latham job as scheduled in 2010 if you might otherwise have the audacity to do so.

How are severance packages taxed?

"190 sounds like a lot but Lantham has over 2000 attorneys. That's less than 10 attorneys from each of their offices. Unless the layoff hit a few offices harder than most I'm not even sure folks in office will be able to tell who's gone unless someone gets cut their close to. "

Uh, yeah - 26 first years in New York so far. Nice theory, bub.

Has anyone heard anything about the layoff status of current clerks? Are they getting the 3L deal?

"How are severance packages taxed?"

I imagine like ordinary income.

Can we please stop singing Latham's praises because they "smiled" while terminating associates and staff. The truth of the matter is that they fired no partners. NOT ONE. Since when is this deserving of accolades?

Can anyone else report on the number of first years?

Great article!
http://www.universityforall.com/

427 -- The answer is simple: $13,000 is not supposed to get you through December. You are supposed to take the $75,000 offer.

388: its all about reputation for future law students and Laterals -- Plus firms now view departing lawyers as sources of future business (some firms even have "alumni" groups). Oh, and it leaves the survivors feeling better about the place that was so fair to the pople who got chopped.

number 408 sucka

number 408 sucka

hit me - number 450 !

number 400 sucka

number 408 sucka

number 408 sucka

number 400 sucka

numba 451- stick it

444: Exactly right.

This whole move seems to show long-term thinking (even if their prior long-term forecast of growth was in error.) They are right-sizing their leverage model to new economic realities while also spending millions and millions on double-market severance in order to buy long-term goodwill with future, present, and (now) past associates.

I think the new rap about bad management is unfair.

Any Latham litigation associates laid off today?

Lathamites: Are they allowing you to claim a bunch of Exemptions so that they don't withhold way too much tax?

455: Tax attorney here. Even if Latham does not prompt you, you can revise your Form W-4 at any time on your own initiative to claim increased exemptions.

Just down claim 10+ because this forces your employer to report to the IRS!

To 444 and 453:

Are you crazy? You really think a first year fired by Latham would "feel good" about it just because its a lot of money? Enough to give Latham business over another firm in later years?

And do you honestly think that this won't affect law students who have a choice between Latham and another firm? Anyone who has a choice would NEVER go to Latham, because if they layoff first years once, what is to stop them from doing it again?

will i be number 500 or will you?

#303, and anyone who knows if first years were affected, how the firm is handling person items, etc.

I'm writing a story for the DJ in LA. 213-229-5303. We can stay off the record.

come on people - EXPRESS SOME EMOTION

i predict like 420 comments

-Freddie B

DC: 17 or 18 overall, 3 of whom were first years.

391,

Who is going to hire this new firm of laid off associates over an established firm? To do what exactly? Clients aren't going to pay for the opinions of a bunch of lawyers just because they are lawyers. Clients hire firms because they want access to the partners, that's why partners are being kept (relatively) happy right now while associates suffer. If you're laid off, you might go out and work on your own, but you won't be able to compete with a large firm.

463 - very insightful

Any layoffs above the 3rd year ranks?

Latham associates got Rick Rolled

33 and 65 - I can't wait until the hammer drops for you or you get shot in a drive-by (hopefully, the latter takes you down). It is truly unbelievable that you self-centered pricks actually think graduating from a T1 law school somehow provides you with a shield against the complex nature and effects of our failing economy. 207 nailed it - in the real world, performance, attitude and billables are king - not which law school you graduated from. That may get you in the door, but by no means will it keep you employed.

Sincerely,
A T2 who has survived successfully for 7 years (round after round after bloody round)

I would've held out for 9 months. Just sayin'...

I would've held out for 9 months. Just sayin'...

27 in DC
45 in NY

27 in DC
45 in NY

http://www.students.sbc.edu/kitchin04/artandexpression/goya-may-third%5B1%5D.jpg

@457 "And do you honestly think that this won't affect law students who have a choice between Latham and another firm? Anyone who has a choice would NEVER go to Latham, because if they layoff first years once, what is to stop them from doing it again?"

No, because law students only have about a three year memory. People were saying the exact same thing about Latham after the 1990 bust and layoffs, but they were able to recruit just fine in the intervening years.

474!

347, I talked to a friend this morning who was in her office and a management committee-type partner stopped by to let her know she's not getting laid off.

So yes, I think they are letting the non-laid off people know individually, too. Maybe the way you can tell that you're getting laid off is that 2 partners stop by, rather than just 1.

I really feel for those affected. Latham drew from a pretty damn impressive pool of talent, and even with the severance these guys deserve something more. They deserve the opportunity to prove themselves as attorneys, and hopefully they will find that somewhere else soon.

Anyone know if there were any layoffs in the New Jersey office?

Does anyone know if there were any layoffs in the New Jersey office?

I was laid off today (1st year) and was told that the severance will continue for six months even if I find a job on Monday . . . not that I will.

I'm totally bummed but am trying to stay positive. There are a lot of people out there who are going through much worse.

Good luck everyone, and I will sincerely miss my Latham colleagues and friends.

I was laid off today (1st year) and was told that the severance will continue for six months even if I find a job on Monday . . . not that I will.

I'm totally bummed but am trying to stay positive. There are a lot of people out there who are going through much worse.

Good luck everyone, and I will sincerely miss my Latham colleagues and friends.

Good luck to everyone. These are unprecedented times, for sure.

This should not have come as a surprise to anyone that has been working @ LW. What is surprising is the number. The signs were there for the past year. It was just a matter of time. In the last couple boom years LW had inflated the number of attorneys and staff hired when it really was not necessary. There were many that were hired and/ or promoted whose skills and competance were not up to par. Morale had been on a steady decline as evidenced by the number of attorneys who opted to leave the firm before the axe fell in 2009.

479: Best of luck to you!! Was it really 26 first years in NYC? Horrifying if true.

This should not have come as a surprise to anyone that has been working @ LW. What is surprising is the number. The signs were there for the past year. It was just a matter of time. In the last couple boom years LW had inflated the number of attorneys and staff hired when it really was not necessary. There were many that were hired and/ or promoted whose skills and competance were not up to par. Morale had been on a steady decline as evidenced by the number of attorneys who opted to leave the firm before the axe fell in 2009.

So, is it a lump sum or paid out over 6 months? I am seeing conflicting reports.

308/315 what do you know?

Collect your severance check, file for your unemployment online and use that $359 you collect a week as beer money. What could be better?

lump sum

485 - it's a lump sum.

485 - it's a lump sum.

I think 5 in the NJ office

numba 500. SUCKA

500!! Thankyouverymuch

500 - FU you all!!!!

500!

500?

Epic fail.

65,

There are enough comments on this list that sufficiently detail the stupidity of your comment (i.e., that graduates from lower ranked schools should never have been in big law to begin with). As for me, at one of the top international firms in the world and a graduate from SJU, my decision to take the full-scholarship at SJU over some IVY league law schools was well worth it. After all, even you can admit (I’m giving you at least some undeserved credit), that making $160k a year with no debt is better than $160k a year plus $120k a year in debt.

500?

Epic fail.

"about how partners should be taking a cut in pay. Most of these firms have PPP of $1-2M. Seeing how the CEO of Citibank will be making $500k this year, maybe partners should be getting the same and not aiding the destruction of our economy so willingly"----

What a moronic stmt. Latham isn't taking public funds for a bailout. They are adjusting their business to fit the current ecomomic conditions. I know this hurts the egos of associates everywhere, but you are completely fungible. Firm (especially in todays climate) have to keep PPP up so that partners don't jump ship to more lucrative firms thus, starting a economic downward spiral from which they cannot recover. And for all of you associates out there bashing partners for not bringing in the work, I will repeat the comment of an earlier poster---you can't make rain in a cloudless sky. We are in a world-wide economic crisis and businesses must respond accordingly. Law firms are not charities. Times suck, but that is the world we are living in.

Best of luck to everyone.

I don't think I am the only one to have found it amusing that 482 misspelled "competence"

500?

Epic win.

500?

Epic win.

65,

There are enough comments on this list that sufficiently detail the stupidity of your comment (i.e., that graduates from lower ranked schools should never have been in big law to begin with). As for me, at one of the top international firms in the world and a graduate from SJU, my decision to take the full-scholarship at SJU over some IVY league law schools was well worth it. After all, even you can admit (I’m giving you at least some undeserved credit), that making $160k a year with no debt is better than $160k a year plus $120k a year in debt.

500?

Epic win.

dont even try it

65,

There are enough comments on this list that sufficiently detail the stupidity of your comment (i.e., that graduates from lower ranked schools should never have been in big law to begin with). As for me, at one of the top international firms in the world and a graduate from SJU, my decision to take the full-scholarship at SJU over some IVY league law schools was well worth it. After all, even you can admit (I’m giving you at least some undeserved credit), that making $160k a year with no debt is better than $160k a year plus $120k a year in debt.

65,

There are enough comments on this list that sufficiently detail the stupidity of your comment (i.e., that graduates from lower ranked schools should never have been in big law to begin with). As for me, at one of the top international firms in the world and a graduate from SJU, my decision to take the full-scholarship at SJU over some IVY league law schools was well worth it. After all, even you can admit (I’m giving you at least some undeserved credit), that making $160k a year with no debt is better than $160k a year plus $120k a year in debt.

"about how partners should be taking a cut in pay. Most of these firms have PPP of $1-2M. Seeing how the CEO of Citibank will be making $500k this year, maybe partners should be getting the same and not aiding the destruction of our economy so willingly"----

What a moronic stmt. Latham isn't taking public funds for a bailout. They are adjusting their business to fit the current ecomomic conditions. I know this hurts the egos of associates everywhere, but you are completely fungible. Firm (especially in todays climate) have to keep PPP up so that partners don't jump ship to more lucrative firms thus, starting a economic downward spiral from which they cannot recover. And for all of you associates out there bashing partners for not bringing in the work, I will repeat the comment of an earlier poster---you can't make rain in a cloudless sky. We are in a world-wide economic crisis and businesses must respond accordingly. Law firms are not charities. Times suck, but that is the world we are living in.

Best of luck to everyone.

500, you asshole.

-496, 498, 501, 502.

CLASSY MY ASS!! MORE LIKE CONNIVING!!

Classy is if the firm actually swallowed losses by provding the 6-month severence. In reality, they just shifted the losses to the incoming 3L by moving back start dates 3 mos. And giving only $13,000 to last till December is a not so subtle hint to defer-and adding that the space is limited - my gosh, such a classic sales tactic.

All in all, by pushing back start dates and encouraging deferral, L&W will save lotsa $$$, allowing them to avoid rescinding offers and provide better severence. What's more, its going unnoticed due to layoffs/ severence package.

A PR GENIUS MOVE. Announce two bad news together and have one pay for the other. No one makes big fuss about the date pushbacks while talking about the great severence. Genuinely, though I'm impressed with L&W's business sense.

How do they get the blood out of the carpets? How are the survivors coping with half the ship getting wiped out???

My new job:
http://www.ehow.com/how_110908_sell-plasma.html

My new job: http://www.ehow.com/how_110908_sell-plasma.html

does anyone else think there is one random bitter guy out there- who sidley probably dinged at some point- who feels a need to contribute a comment to every single abovethelaw post about how bad it is/going to be/is about to me/might be at sidley without a SHRED of evidence/corroboration/sense?

511: seltzer and vodka, respectively.

First!

497: right on! 33 and 65 are just lonely, angry, one-position losers with no weekend plans (ever).

-Fellow T2 with a biglaw job

The sky is falling...

I predict 420 comments.

-Michael Phelps

Final number of NYC first years cut is 32. And 20+ second years. Not sure how many above that but there were cuts among mid-levels as well.

Latham is a class act, and all these vile comments reflect much more on the commentor than the firm. I no longer work there, but was in a management position for years and saw up close how the partners conducted themselves and their finances, and it was impressive. They were always generous with staff as well as attorneys (as confirmed by staff getting the same package as attorneys--unheard of).

And talk about naive! Some of these comments are a good indication that JDs don't have the foggiest idea how a business runs and what it takes to keep it going. It is as complicated as any corporation out there, especially when you get into the $1-2 Billion dollar firms. And remember, it's not the firms that drove salaries so high--it's the associates coming out in a strong market that insisted they were worth more and started bidding wars fo top talent. It's the greedy associate mentality--with a child like naivete about how you cover all those costs. I hope all of you end with great jobs and become partners in a firm you love. When you do, you will look back on this and realize how little you know about the BUSINESS of law. There are no easy decisions when you are confronting something like this. I can assure you that none of the partners or top managers are sleeping at all, let alone sleeping well. Are you so cynical that you can't believe people have good intentions? If you want to hate firms, I suggest you start with Howrey, Wilmer, Skadden, and others who actually do treat people like crap.

No, I am not a "plant" or anything else, I am just a former employee who is heartbroken about what's happening to people I still care a great deal about.

514 - that must be the case unless this person chimes in with info.

Today was a good day for me -- plenty of cuts everywhere!

- Sweeney Todd

This is Karma for getting paid 180K out of school for no reason other than doing well the LSAT. I feel so sorry for these people who were getting paid way more than their worth.

Does anyone have any xanax for the asshole @ 521?

Does anyone have any xanax for the asshole @ 521? So pathetic. For the sake of your own dignity, Latham equity partners and ex-partners "who care" so much, please stop posting.

I predict 420 comments.

-Michael Phelps

We get it already Michael

I am shocked by how naive some of you are. Billion dollar law firms are big businesses that have to be run as a business. Associates certainly didn't seem to mind that when everyone was fat and happy, but in an unprecedented economic crisis associates are the first to point fingers

I no longer work for Latham, but I was in a management position there for a number of years, and I can tell you that the partners, directors, and managers care a great deal about how they treat people. Tell me any other firm that would give staff the exact same package as associates?? It's unheard of. Greedy associates drove the bidding wars during good times, with some kind of complete igorance about the business equation. I can say for certain that from Bob Dell down, partners, directors, managers are heartbroken about this incredibly difficult decision and are losing plenty of sleep over it. Look at firms like Howrey, Skadden, Wilmer, etc. that treat people like crap. Latham is a class act and is a genuine place with a heart.
No, I'm not a "plant" or some kind of shill for Latham. I am simply a former employee who saw firsthand, and repeatedly, how decent these people are. It breaks my heart to see all this nastiness about people I still care a great deal about. I hope all of you land on your feet and eventually become partners in a firm you love. When you are on the other side of the table, looking at the financials and other business considerations, you will get it.

I am shocked by how naive some of you are. Billion dollar law firms are big businesses that have to be run as a business. Associates certainly didn't seem to mind that when everyone was fat and happy, but in an unprecedented economic crisis associates are the first to point fingers

I no longer work for Latham, but I was in a management position there for a number of years, and I can tell you that the partners, directors, and managers care a great deal about how they treat people. Tell me any other firm that would give staff the exact same package as associates?? It's unheard of. Greedy associates drove the bidding wars during good times, with some kind of complete igorance about the business equation. I can say for certain that from Bob Dell down, partners, directors, managers are heartbroken about this incredibly difficult decision and are losing plenty of sleep over it. Look at firms like Howrey, Skadden, Wilmer, etc. that treat people like crap. Latham is a class act and is a genuine place with a heart.
No, I'm not a "plant" or some kind of shill for Latham. I am simply a former employee who saw firsthand, and repeatedly, how decent these people are. It breaks my heart to see all this nastiness about people I still care a great deal about. I hope all of you land on your feet and eventually become partners in a firm you love. When you are on the other side of the table, looking at the financials and other business considerations, you will get it.

I am shocked, simply astounded, that the associates we shafted today can't do simple math. There isn't enough money to purhcase our Hampton's houses, support our mistresses, pay for our cocaine habits, buying our 4th German luxury automobile if we have to reduce profits per partner. Hate on firms that actually undertand to leverage associates and create a business model that works.

so powerless. stealing envelopes just isn't doing it for me anymore. went to kitchen and took a bite out of partner's lunch. plan to do it again tomorrow.

521--you do realize that partners were raking in record PPP's as well, right? It's not like greedy associates were the only ones making money. In fact, most firms saw the ratio between PPP and associate salaries INCREASE even as associate salaries rose.

You say that JDs have no idea how to run a business? Why apply that to associates and not to Bob Dell and company? Apparently they didn't know how to run a business, either, despite having almost the exact thing happen in the 1990s. Junk bond work then, capital markets now. Same result.

Girls at my high school used to leave for six months all the time. It was no big deal, they just came back with babies.

It's all about bucks kid. The rest is conversation.

I've read a great deal of the comments. Not that anyone who would care, but I WAS ONE OF THE PEOPLE THAT WAS LAID OFF TODAY FROM LATHAM & WATKINS. Latham, thank you very much for such the generous package that you gave me. I am not a hater of Latham. I actually liked working there and I'm going to miss the Firm overall. I couldn't stand the department that I worked in, but the Firm was good to me while I was there and I don't have anything negative to say about them at all.

Good luck in your future endeavors Latham. ^_^

i love the asian girl eating candies in the dealbreaker ads on this site. i would love to hose that slanty-eyed honey.

- WGWAG Redux

so nice to be wrapping up the day on a high note