Nationwide Layoff Watch: Faegre & Benson (67 Staff)
Not satisfied with just oil spills and attorney spills, Faegre & Benson has aimed its tanker at staff. Yesterday, the firm sent out the dreaded email:
With regret, we will reduce by 58 the number of Legal Administrative Assistants, Administrative Department Staff, and Paralegals in our U.S. offices. Tomorrow will be the last day at the firm for the individuals impacted by this decision.
The email also references a Sophie’s Choice buyout previously made to staff, which was accepted by nine:
An additional nine members of our staff accepted the Voluntary Separation Package offered earlier in the month. Their last day will be Friday, February 27.
If severance for all terminated staff is the same, it thus appears that staff who chose the buyout and got an extra week’s pay chose wisely.
But go go gadget, attorney skills: the question is, will staff that chose to voluntarily separate be eligible for unemployment? That depends on the state. Let’s hope that those nine staff checked the books in Minnesota prior to making their choice.
The full email, after the jump.
From: Management Committee
Sent: Thu 2/19/2009 4:53 PM
To: ALL USERS/ALL U.S. OFFICES
Subject: Recent Personnel Decisions
We have made a very difficult decision regarding our staffing levels.
With regret, we will reduce by 58 the number of Legal Administrative Assistants, Administrative Department Staff, and Paralegals in our U.S. offices. Tomorrow will be the last day at the firm for the individuals impacted by this decision.
An additional nine members of our staff accepted the Voluntary Separation Package offered earlier in the month. Their last day will be Friday, February 27.
We want to express our thanks and appreciation to each of these individuals for their hard work and dedication. We wish them well. They will be missed.
We have sought to align our resources with the projected demand for our services. And with the reduction announced today, we believe that we have now properly aligned our staffing levels. As difficult as it is, this reduction positions us for the future.




Comments
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Cedric Benson is a Faegre. Go Bears.
Yawn. Who?
I am not Gay.
"Not satisfied with just oil spills and attorney spills, Faegre & Benson has aimed its tanker at staff"
Really? I mean sure make the writing interesting, but this is way too flowery.
I want Elie back.
Cedric Benson went to TEXAS!!!!!!!!!!!
4 = Elie.
These posts are much better than Elie's.
Did Faegre rescind offers to any of there 3Ls?
can anybody comment on what mentality/morale is like in the office...esp since attorneys were saved this round?
Sure. We lied. We really didn't regret this decision. Also, it wasn't really a difficult one to make. Most law firms are overstaffed.
"Go go gadget attorney skills" was the best line I've read all week.
Fergilicious. You've just earned a top spot on the ATL news cycle for an entire weekend.
Mystal: Don't come back!!!!!!!!!!!!!!!!!!!!!!!!!!!
Did Faegre rescind offers to any of there 3Ls?
Marin is way better. How did we ever make this mistake?
Did Faegre rescind offers to any of there 3Ls?
Marin, we're beginning to see why Elie won. Your forced grandiloquence comes off as vapid.
LAYOFFS?!? Don't talk about -- LAYOFFS??? You kiddin' me??? LAYOFFS!?!
Best wishes to the staff that lost their jobs today.
16 = Elie, fearing for job.
Something's going on up north. This is the second week that Faegre has taken a machete to their firm. Why didn't they do this last week? Is there something more serious that hasn't come out yet?
Not many comments for such a large cut. Is that because Minnesota attorneys--instead of having lots of work to do--are already home for the weekend? Not a good sign.
Since this layoff only involved staff, not attorneys, I suspect most of the posters here aren't interested.
21 - We Minnesota attorneys are always home by this time on Friday, even when the economy is booming. It's a good life. ;)
23: I want to move to Minnesota!
I work in Minnesota and I am still in the office, unfortunately. And it is snowing out. And it is cold. But I have a job, so I guess all that is okay.
Minnesota is full of nice folks, but it is the worst place on earth weather-wise. My god. You'd think that the cold winter would earn you a nice temperate summer, but it is as hot and humid as Missouri, with mosquitoes as large as B-52s out an hour before sundown. And I smoke, alot. They don't care, they eat you anyway. I've been in bayous with less bug life. But the people are pretty wonderful. And so is their somewhat populist viewpoint on labor. I'm pretty sure that those who took the voluntary buyout will be able to collect unemployment as well.
Minnesota also tends to be pretty conservative (though not politically). During boom times, it doesn't boom as much, and during bust times, it doesn't bust as much. So big cuts like this are a very big deal. It contrasts with the traditional stability of Minnesota life.
Breakdown by office?
27: Good point. All the more reason I was shocked when Faegre laid off attorneys - obviously, firms all over the country are hurting, but if anyone would ride it out as far as layoffs, my guess would have been places like Faegre and other lifestyle/midsize city based firms. I'm at a similar firm to Faegre in terms of culture/sales pitch/market, and it defintely made me gulp.
Could you perhaps do something worthwhile, and pen an article - or even a series - on which firms are best suited to withstand the current economic downturn? Thanks.
No rescinded offers to 3Ls or summers.
#31-- There hasn't been any rescinded offers or there are not going to be any? Thanks for the clarification.
It has been a tough week for everyone, including partners. Management Committee says that this is the end of the cuts, and even though that has to be taken with a grain of salt in case things get even worse than predicted, that does appear to be the intention.
From what was said at the annual meeting, there is still a summer program and there are still new associates coming in the fall. I guess that can be interpreted a few ways so I am sure it is not very reassuring if you're in that position. All I know for sure is that they have not rescinded any offers yet, and that they say this is the end of the "personnel decisions." If you are an incoming associate, my best advice is to call someone you trust within the firm.
My sympathies to those lawyers and staff that lost their jobs in the last few weeks and months. Hopefully this becomes an opportunity to find something you like even better.
That said, after last week's end, today could have been much worse. Best wishes to all.
It is interesting how the comments about Minnesota firms tend to be very civilized and intelligent. Is that because only Minnesotans are reading these?
About 20 partner layoffs are expected this spring. They'll be stealth layoffs -- just a departure here and there over a couple of months. Perhaps after that the blood-letting will end, but given the way the Management Committee has responded I wouldn't count on it.
Faegre must be having some real problems. The market has been tough for regional firms, and Faegre, as much as they might see themselves as a national firm, are really a regional firm. They are probably having trouble competing with the national firms. It is just a matter of time, I imagine, before the national firms descend on Minnesota. Right now the state is devoid of national firms.
This was clearly one layoff. If you drop several dozen lawyers, it makes sense that staff will follow. This is going to be a difficult year for all firms that have a material transactional practice. You can either cut cost now, to adjust for the demand for services, or you can wait till the end of a dismal year and possibly lose more lawyers (including some you really don't want to lose long terms). Others will follow Faegre's example.
This was clearly one layoff. If you drop several dozen lawyers, it makes sense that staff will follow. This is going to be a difficult year for all firms that have a material transactional practice. You can either cut cost now, to adjust for the demand for services, or you can wait till the end of a dismal year and possibly lose more lawyers (including some you really don't want to lose long terms). Others will follow Faegre's example.
This was clearly one layoff. If you drop several dozen lawyers, it makes sense that staff will follow. This is going to be a difficult year for all firms that have a material transactional practice. You can either cut cost now, to adjust for the demand for services, or you can wait till the end of a dismal year and possibly lose more lawyers (including some you really don't want to lose long terms). Others will follow Faegre's example.
In answer to the question regarding employee morale at Faegre, I can attest to the fact that it is horrible. At this point, nobody trusts anything that they are being told. Nobody really believes that this is the end but we'll see (and, in the meantime, hope that we're wrong).
Although the firm is lead by a bunch of liberals, their approach to firm management is rather conservative and i get the impression that they are being ultra-cautious in that regard. With that said, you have to give the management some credit for doing this in public, not selling out the attorneys by claiming the decisions were performance based, and giving the attorneys three months to find other options.
Although the firm is lead by a bunch of liberals, their approach to firm management is rather conservative and i get the impression that they are being ultra-cautious in that regard. With that said, you have to give the management some credit for doing this in public, not selling out the attorneys by claiming the decisions were performance based, and giving the attorneys three months to find other options.
I don't think anyone can speak to morale firm wide. Like all large firms, people within the organization tend to think of the "firm" as their group or floor. Morale may be low in certain areas but don't believe that one person can comment for everyone.
I agree with 45. Morale seems entirely dependent upon practice group, office, etc. If you are in a practice group that got hit hardest you are likely more cynical and skeptical because you are also at risk.
liberalism only goes so far as long as your paycheck doesnt get diminished, then the knives come out. more legal layoffs coming so dont hold your breath......
I work in a group that was especially hit hard by the lay offs, and I can say that the moral is quite low just now. I do take what the management committee has said "That these are the last lay offs" with a grain of salt; but at the end of the day I do believe it. Why would they not get rid of as many as possible now, to avoid the bad press and sinking morale of more lay offs in the future? 60 people gone yesterday, plus the 30 people gone a fortnight ago - Faegre is pretty much a bare bones staff for a large firm now.
I work in a group that was especially hit hard by the lay offs, and I can say that the moral is quite low just now. I do take what the management committee has said "That these are the only lay offs" with a grain of salt; but at the end of the day I do believe it. Why would they not get rid of as many as possible now, to avoid the bad press of more lay offs in the future? 60 people gone yesterday, plus the 30 people gone a fortnight ago - Faegre is pretty much a bare bones staff for a large firm now.
The management committee's promises that there will be no more layoffs has to be taken with several grains of salt. Through most of January, they were telling partners there would be no layoffs. Then the January hours came in, which were terrible (and which had followed followed low December hours). With that, panic ensued and the layoffs started. Presumably, If hours don't pick up this spring, there will be another round of layoffs.
There are rumors of a capital call at Faegre. Can anyone confirm?
51, I don't know anything about B&F, but most firms are quietly asking equity partners to contribute capital. Not all of that is unusual. In general, there are always some partners who take a bigger draw than they earn during the year, a few as a lifestyle choice to invest in the market (when there was one), a few because business went down over the previous year, a few because clients didn't pay timely. So you won;t get straight answer whether the firms are making a capital call because the economy is drawing down.
lolwut?
this teh lulz fursore.
We've heard the accounting persons advising the Management Committee in this fiasco were formerly at Dorsey. As Southside Johnny sang, "Hearts of Stone..." Hope the paranoia can settle down now and that the economy takes a turn to end all this bloodletting and greedy desperation.
I really like the line: "Tomorrow will be the last day at the firm for the individuals impacted by this decision."
What crap. Why sugarcoat it? Instead be truthful and say "We're giving the suckers 24 hours to clear out their desks and be careful, you might be next!!!"
I heard Dorsey is about to fire a bunch of lawyers and perhaps 3Ls - is this rumor true?
Clients need to be closely scrutinizing the bills at all these firms that are cutting more staff than attorneys. What's your first year really doing these days?
From a business standpoint, the firm is quite conservative so that there were any layoffs at all shows how serious the current economic crisis is. Morale is still pretty good in the Lit groups. Target's downturn is worrying but most of the other major firm clients are still strong, so that is an advantage. I would still rather be here than any other MN firm. Fantastic co-workers and staff, excellent firm culture, and great cases.
At least two of these positions were hourly attorney positions which are considered 'staff' positions at Faegre.
No, Dorsey is not discussing any layoffs. Nice try. Faegre is a great firm but their air of superiority has been damaged. I'm sure it is still a great firm and a great culture but maybe not for the 29 lawyers and 68 staff that got shown the door.
57: My impression is that Faegre was overstaffed with a number of assistants not having much work to do (including some who were not assigned to an attorney at all). I don't think firm clients are at all concerned about seeing a 2-1 ratio of staff to attorney cuts; it just means that the firm has cut their operating expenses (lower expenses = usually a good thing in terms of containing costs for clients).
Firms really need to figure out efficient staffing levels and not just keep people employed doing nothing but surfing facebook all day. Unfortunately, when times were good, firms didn't pay much attention to their cost ratio. They now have to do so because of the tanking economy -- resulting in people having to look for jobs in the middle of a really crappy economy.
My advice to firms: figure out your ideal staffing levels and maintain that leanness/efficiency in good times and bad. My advice to employees: make yourself useful and work hard. No more attitude of looking around and saying "but he or she isn't working hard so I shouldn't have to work this hard, either."
At least 12 attorneys have been laid off at Dorsey Minneapolis. Mostly people who had great performance reviews in the past. Perhaps it was standard attrition, perhaps it was a stealth layoff, but the result is the same for those 12 attorneys -- unemployment.
The prospects for 2Ls at the two larger firms in Minneapolis are pretty bleak. Faegre & Benson is looking (overly?) cautious and Dorsey & Whitney is looking (overly?) confident. Same market, similar clients. Weird.
Faegre only took 17-20 for their summer (typically 30-40), cut it short by 2 weeks, and has fired 90+ employees in the last two weeks. How confident can those SAs be that an offer will mean anything?
Dorsey took a typical 35+ class, cut 1 week from their summer; and has no admitted layoffs. How confident can those SAs be of getting an offer?
Good times.
If you've been laid off, we'd like to hear from you in our comment section (a few people have already commented). Let us know what you're doing, what your plans are, etc. Are you going to travel? go back to school? lateral? (god help you...)
http://stuffbiglawassociateslike.wordpress.com/
There have been no layoffs at Dorsey. Let me assure you that 62 is full of it. What are you some F&B apologist. Facts are facts and you don't have any facts.
Agreed. No layoffs at Dorsey. 62 is lying.
did somebody sit on a duck?
In the last 4 months 2 associates have left Dorsey. One got a job with a corp and another left the law. That's it 62.
63, Dorsey hasn't cut anything from their upcoming summer class. They are still coming in for the standard 12 weeks. And they aren't over confident, Dorsey is just a really good firm, with a solid client base and on solid financial footing. You can say what you want but I wouldn't expect any trouble at Dorsey any time soon. They kept their growth in check and are at a size that is appropriate for the amount of work that they have. I don't think you could find anyone there who would say that they haven't been busy. Trial is still well exceeding their hours, IP is well under their hours (but they always are) and everyone else is right about where they have always been in terms of hours. I don't think the income SAs have anything to worry about.
68 and 69 = Dorsey 3rd years living in denial.
I hate Faegre & Benson. They asked former Judge Naughty Nottingham to threaten me and my husband and jail me simply for filing a non fraudulent defamation and Conspiracy Against Rights claims in which they or their client was the defendant. Faegre said in court that I was not allowed a lawyer or an evidentiary hearing before being sent to jail and that summary procedure can be used in an indirect contempt case. They claimed to have an injunction without a document labeled injunction or an injunction hearing. Faegre wrote that the Anti Injunction Act doesn't apply to federal courts acting in diversity. They published that they won their case against me based on statute of limitations, an affirmative defense, but they didn't file an answer and their client republished false statements two months before they were served and also two years before they were served and I claimed specific damages and that their client participated in a local government conspiracy. I want to sue them and collect from them but if that doesn't happen I hope they go bankrupt. They represented Mutual Insurance Limited of Bermuda even though it has no NAIC number and they told the 10th Circuit there were no other interested parties. They billed Mutual Insurance and acknowledged in a motion that there was insurance. I think they probably paid Judge Naughty's prostitute and strip club bills because 9 News of Denver found that N was seeing a prostitute weekly for over two years before his wife found the first strip club bill.
Kay Sieverding
I hate Faegre & Benson. They asked former Judge Naughty Nottingham to threaten me and my husband and jail me simply for filing a non fraudulent defamation and Conspiracy Against Rights claims in which they or their client was the defendant. Faegre said in court that I was not allowed a lawyer or an evidentiary hearing before being sent to jail and that summary procedure can be used in an indirect contempt case. They claimed to have an injunction without a document labeled injunction or an injunction hearing. Faegre wrote that the Anti Injunction Act doesn't apply to federal courts acting in diversity. They published that they won their case against me based on statute of limitations, an affirmative defense, but they didn't file an answer and their client republished false statements two months before they were served and also two years before they were served and I claimed specific damages and that their client participated in a local government conspiracy. I want to sue them and collect from them but if that doesn't happen I hope they go bankrupt. They represented Mutual Insurance Limited of Bermuda even though it has no NAIC number and they told the 10th Circuit there were no other interested parties. They billed Mutual Insurance and acknowledged in a motion that there was insurance. I think they probably paid Judge Naughty's prostitute and strip club bills because 9 News of Denver found that N was seeing a prostitute weekly for over two years before his wife found the first strip club bill.
Kay Sieverding
Prostitutes take cash. Why can't partners and judges figure that out? Oh, they're probably running the charges through as business expenses. Funny thing is, lots of ordinary people don't appreciate that sort of thing. Especially when they've just been laid off or evicted. Because then they stop trying to get out of jury duty - they need the money you see. That's how hogs get slaughtered.
71-73 - who let you out of the crazy farm?
http://www.rockymountainnews.com/drmn/local/article/0,1299,DRMN_15_4438023,00.html
Are there any real law firms in Minneapolis? Only firms I've seen mentioned here are Faegre and Dorsey. I don't know squat about Faegre but I have worked against Dorsey's NYC office and calling them incompetent would be generous.
Actually 70 not a Dorsey 3d year. But I do know what is happening there. No layoffs. Does that mean no layoffs in the future? Who knows how bad the economy gets. But Dorsey is drastically cutting expenses to try to save jobs. Oh and 76 I have worked against many NYC big firm lawyers and sometimes they are excellent and sometimes they can't see the forest through the trees.
76: Faegre is primary counsel for the single largest private company in the country (Cargill) along with some of the other larger companies in the country (Target, Wells Fargo). The IP and General Lit groups defend some of the world's top tech, agribusiness and drug & device companies throughout the country.
Stoel Rives and Fulbright & Jaworski have offices here but they are kind of a joke. Faegre, Dorsey, Robins Kaplan, Briggs & Morgan, and Fredrikson & Byron represent substantially all of the Fortune 500 companies located here (33, or 35 including Seagate and Wells Fargo).
74 and 76 made me laugh out loud.
The real question is: when will Faegre's regulatory litigation group spin off to form Wolf & Mosquitoes LLP?
Faegre and Dorsey (possibly Robins) are probably the only national firms in MPLS, but there are plenty of midsized regional firms in the city. There are also small offices for DLA and Morgan Lewis, but they don't do much for the fortune 500 in the upper midwest.
As for firings, Faegre let go first and second years. Dorsey may be handling this right. Faegre's approach at letting go such junior associates is troubling.
@81: Faegre also let go several staff attorneys and special counsel (about 1/3 of the total firings, from my understanding) as part of the 29. Only one litigator that i've heard about.
Thanks, 75. Certianly gives some context to 71-72.
Anyone heard about whats happening in other midwest markets? WSJ blog comments report stealth layoffs at Quarles & Brady and rumor has it Michael Best and Whyte Hirschboeck are slashing associates.
Over the falls tomorrow. Ready?
Who do you think is next?
I heard EAPD is in trouble.
F&B cut summer program from 12 to 10 weeks.
Understand F&B went from 12 to 10 weeks on summer program.
Several Comments:
F&B didn't just lay off first and second years--they laid off associates at every level, including at least one 7th year, who was deferred from partnership "because of the economy" in the fall.
There will be no capital call, because there is no capital at F&B. They don't have equity partners. Partners don't own shares in the firm.
Rumor is that some/several partners will be pushed out of the firm over the course of the spring.
None of the 3L offers have been rescinded, but the summer program has been shortened by two weeks. And they did take fewer summer associates this year than in the past.
Several Comments:
F&B didn't just lay off first and second years--they laid off associates at every level, including at least one 7th year, who was deferred from partnership "because of the economy" in the fall.
There will be no capital call, because there is no capital at F&B. They don't have equity partners. Partners don't own shares in the firm.
Rumor is that some/several partners will be pushed out of the firm over the course of the spring.
None of the 3L offers have been rescinded, but the summer program has been shortened by two weeks. And they did take fewer summer associates this year than in the past.
I have a question about the definition of staff vs attorneys wrt layoff statistics.
Are part-time law students (some of which are registered to practice patent law), IP scientific advisers and patent agents considered "staff" ?