Nationwide Layoff Watch: Goodwin Procter Announces Layoffs
In case you are wondering, this is going to be a bad day for associates and staff working in Biglaw. We’ve already seen big layoffs at Dechert and Bryan Cave. And we’re sitting on even more bad news (waiting on additional sources). But we just received official confirmation from Goodwin Procter that significant cuts are taking place today.
The firm is telling us that 74 people have been let go. Goodwin gave ATL this statement — which was also sent out to all Goodwin employees moments ago:
After careful deliberation, we have made the difficult decision to reduce our attorney and professional staff work force. We are reducing our associate ranks by 38 people and our staff ranks by 36 people, resulting in a reduction of approximately 4% in each group. The attorneys affected include associates and professional track attorneys and the staff affected include paralegals, secretaries and administrative staff.
People have been suggesting that Goodwin have been conducting stealth layoffs for months, but the firm has repeatedly denied those rumors.
Instead, Goodwin people maintained that the firm would openly announce layoffs, should they occur. Here, it would seem, is that announcement.
Check out Goodwin’s full statement after the jump.
GOODWIN PROCTER — STATEMENT — LAYOFFS
Although we entered fiscal 2009 with cautious optimism, a number of the client areas that we serve continue to face serious challenges due to the global economic downturn. We are clearly in an unprecedented economic environment. It is now apparent that this downturn will be deeper and broader than past recessions, and all business sectors will be adversely affected in some way. While Goodwin Procter is fundamentally strong and healthy, we - like most law firms - are not immune to the effects of this recession. Our transactional practices, in particular, have seen a decline in demand for legal services that unfortunately does not show signs of improving in the near term.
As a result, after careful deliberation, we have made the difficult decision to reduce our attorney and professional staff work force. We are reducing our associate ranks by 38 people and our staff ranks by 36 people, resulting in a reduction of approximately 4% in each group. The attorneys affected include associates and professional track attorneys and the staff affected include paralegals, secretaries and administrative staff.
Most of the individuals affected are in the Business Law Department and are based in Boston and New York, our two largest offices. However, both departments and virtually all offices will be impacted to some degree.
As you would expect, we are providing comprehensive severance packages, transition support and career counseling services to the individuals who are affected. In addition, we are pursuing all available channels to assist our employees in finding new jobs, including our network of
clients and alumni.
I want to assure you that this decision was not made lightly. Ultimately, after weighing many factors, we determined that we would need to reduce our headcount to ensure that we could provide meaningful work and development opportunities to the greatest number of lawyers and
other professional staff. Weighing heavily in our decision was the uncertain length of this downturn. If we believed that an economic turnaround was imminent, or even within sight, we would not have come to this difficult decision.
I am grateful for the hard work and contributions that all of our attorneys and staff have made to the firm and our clients. The strength of Goodwin Procter is due in no small part to the extraordinary talent and commitment of our people. I believe that the difficult actions that have been announced today will enable the firm to remain strong and to provide the robust professional development experience that is deserved by all of our lawyers and professional staff.
This is an enormously challenging time, and I know that many of you will have questions and concerns. We will be scheduling firmwide and officewide meetings tomorrow. Information regarding those meetings will follow shortly. In the meantime, please do not hesitate to contact me, or your department chairs or office leaders.
Earlier: Musical Chairs: Goodwin Procter’s Gains or MoFo’s Losses?
Prior ATL coverage of law firm layoffs
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Comments
fist
fist
FIZIRST
Holy mother of God.
They are coming on a minute by minute basis.
What's next?
ATL announces dissolution of the entire V100?
Bloody Thursday... if today's bad, I'm sure tomorrow will be worse, right? Holy hell.
Goodwin associate here- to everyone involved, I'm SO sorry. This could not suck more.
Holy mother of God.
They are coming on a minute by minute basis.
What's next?
ATL announces dissolution of the entire V100?
AH HELL DAMN NO SON
VALENTINE'S DAY MASSACRE!!!!!!
9 - hit the nail on the head. Heads rolling in the streets. Even people in the art sector who earn 20K/year are getting laid off!
friday the thiz er tiz eeenth will be briz utal
2/12/09 - THE DAY THAT BIGLAW DIED
Heard Faegre & Benson also did layoffs?
Crazy day at GP. Just saw 3 people I work with let go...
Crazy day at GP. Just saw 3 people I work with let go...
I'm starting to think that starting law school in August might not be such a good idea...
Does anyone have a total tally of all of the reported associate layoffs in the US?
Does anyone have a total tally of all of the reported associate layoffs in the US?
Does anyone have a total tally of all of the reported associate layoffs in the US?
so is it 6 or 3?
Is that 6 or 3 people. and have you seen anymore since your last post
Does anyone have a total tally of all of the reported associate layoffs in the US?
16 - Same here!
- 3L in August
I think you should still go to school. Better to be in school in a bad economy than unemployed. By the time you graduate, things will be better.
Not a good day here at GP.
Is that 6 or 3 people. and have you seen anymore since your last post
16 - probably not if you want to do biglaw!
15: You aren't out of the woods yet -- they just haven't gotten to your office.
"I'm starting to think that starting law school in August might not be such a good idea..."
Back out and apply to pharmaceutical school.
Why not have furloughs and not lose expensive talent that they will need in the future?
15: You aren't out of the woods yet -- they just haven't gotten to your office.
Goodwin absolutely has been conducting stealth layoffs all throughout the fall/winter.
So it's worse than even this memo makes it seem.
14+15 so is the total 3 or 6 and have you seen any more since last post
Any details on the severance packages, etc.?
this is rough. condolences to everyone affected. at least ropes didnt let any associates go.
Since layoffs are done in private, 15, if you saw three people being let go, you must be the dirty SOB partner swinging the axe. Get off this board right now!
Since layoffs are done in private, 15, if you saw three people being let go, you must be the dirty SOB partner swinging the axe. Get off this board right now!
ex-GP'er here who left a few years ago, people this is devastating. I've heard the same rumors about stealth layoffs and couldn't really verify since GP tends to leave people on its webpage longer, but historically GP has been one of the kinder firms towards this type of thing. An announcement of 70+ people let go from GP is indicative that this simply an unprecedented national bloodbath.
If you need a laugh, check out this on YouTube -- it's the Taxpayers Prize Patrol.
http://www.youtube.com/watch?v=GHIulivm56E
goodwin procter folks are insufferable. they deserve unemployment.
16 - probably not if you want to do biglaw!
16, presumably you haven't yet incurred any law school related debt yet, right? Assuming you havent, WALK AWAY! If you don't have a backup plan, go into the Navy/Air Force OCS, become an officer and wait out the recession in (relatively) safer branches of service.
Now is not a good time to go to a non-T14 law school. Probably not a great time to go to non-T6s as well.
I don't know what to do. Thing could be completely different in 2012. Then again, they could be like this or even worse.
And no, I don't have any law school debt as of yet. I'll be a 1L in August.
-16 (now 15)
BOSTON MASSACRE
Goodwin absolutely has been conducting stealth layoffs all throughout the fall/winter.
So it's worse than even this memo makes it seem.
Dude, Holland & Knight is also laying people off. "Reduction in force," not stealth, etc. No idea how many people.
OCEANS RISE
CITIES FALL
QUINN REMAINS
39's are insufferable
39's are insufferable
OCEANS RISE
CITIES FALL
QUINN REMAINS
OCEANS RISE
CITIES FALL
QUINN REMAINS
38 -- True. I know people who were laid off from Goodwin before Christmas, and they still appear on the webpage as of today. I would assume they'll be taken off soon, as their "three months" is set to run out soon.
The ship be sinking...
Any word on whether they fired any first years? I know quite a few in the NY office...
This fucking recession is going to last until 2030! Fuck!!!!
WSGR also did heavy stealth layoffs in the months prior to announcing layoffs publicly, so the actual number of associates tossed out into the streets is much higher than the firm reported. Interesting that now the firm is hiring tons of contract attorneys. WSGR partners are a bunch of greedy heartless pricks.
this is a great tracking tool for big law layoffs
http://lawshucks.com/layoff-tracker/
16 - this is probably the perfect time to start law school. The recessionary cycle should be over by 2011 (provided the "stimulus" package doesn't do significant harm - fingers crossed), meaning law firms who trimmed the sails in 2008-2009 will be hiring in 2012-2015 to meet increased demand.
1L summer might be tough going, and you will have to get damn good grades to be competitive - but what else is new?
Good luck.
14 here...count is up to 5 in my department...
57 - Hoover troll
Were the classes of 08 and 07 affected?
Hey 14 and 58- you are next!!!
15 - odds are things will be ok in 2012. However, there's no telling what your average BigLaw firm will look like then. If I had to guess, I predict a contraction of associate ranks and an increase in the use of cheap contract labor for doc review and due diligence (the meat and potatoes of associate life). What does that mean to you? Well, even if the economy is better, there will still be fewer associate jobs and a lot of law students competing for them. Time to look deep inside your soul and ask yourself if you really want to be a lawyer, or if you just want a big paycheck that doesn't involve math or blood. My advice - if the desire to practice law isn't getting you out of bed in the morning, don't waste your time and money on this huge gamble. Good luck.
14, 58 - are you Boston or NYC?
Thanks, 57. That's sort of what I worked out in my head, but it's still a huge gamble nonetheless.
-16(15)
GP folks, anyone know if today was an unlucky day for "Lucky"?
63 - In Boston.
Do these Goodwin layoff numbers include the STEALTH layoffs, which I know for a FACT were being done as early as last SUMMER (and NOT part of the regular review process)?
any first years?
yes, first years in new york were let go - all of them
ALL first years in new york were let go?
69 - if so, GP should get out of the school recruitment business
Latham pushed back LA start dates to January 2010
-Latham 3rd Year
In Boston it was more than jsut first years...some associates who have been here a few were let go.
LAYOFFS!?!? Don't talk about -- LAYOFFS? You kiddin' me? LAYOFFS??
First years go best with a nice chianti.
Evan here, writing from Miami, packing up for another Asia trip this weekend.
The numbers don't add up. 38 associates is not a 4% reduction in that group, which would suggest there are about 900 associates at Goodwin. Their website indicates they have 531 associates (which also includes the walking dead who have been stealthily laid off over the past several months but whose website profiles linger on). It's more like a 7% reduction in associates. (Probably closer to 10% or more in reality, when you add in the stealth layoffs that they won't admit to.)
OCEANS RISE
CITIES FALL
QUINN REMAINS
Latham pushed back LA start dates to January 2010
-Latham 3rd Year
The Leaning Tower of Pisa has more ominous cracks in the foundation.
-16 (now 15),
If I were in your position, I would back out unless it was a T6. Too much risk right now to take on all that debt with the hopes that this will be an early eighties recession or better. The global financial system is insolvent while the debt bubble that has been building up steam for over 40 or so years is imploding. The snowball rolling downhill is only just starting to pick up speed. It might take more than 3 yrs to even start recovering.
Of course, being in graduate school and avoiding a draft might not be that bad of a situation if governments manufacture the next world war.
Good luck with your decision!
I don't know if 74 is a new schtick or not. But either way, hilarious.
Best of luck to everyone out there who has been let go. I fear I may be joining you soon.
I don't know if 74 is a new schtick or not. But either way, hilarious.
Best of luck to everyone out there who has been let go. I fear I may be joining you soon.
I have a question: For those junior associates still employed at their firms, do you think any amount of constructive criticism during your review is an indicator that you may be out the door soon? Are firms giving glowing reviews to those they're 100% sure they want to keep?
How should we generally interpret performance reviews?
@81 T6?!? I love it when people who have no decision-making authority post about job prospects at major firms. Some of us saw this coming, planned for it, and have no plans on cutting back on our number of new associates because we never increased them in the first place.
In this economy, I'd be more willing to look at a "Gunner" from Iowa, Vandy, or Colorado than some middle of the curve entitled pussy from Harvard.
How many from DLA today?
What in the world is a "stealth layoff"? If, e.g., a 500 associate firm routinely pushes out the bottom 5% each year based on reviews, does that mean it has "stealth laid off" 25 people a year? Nope. Not everyone let go during a recession is the victim of a "layoff."
That said, this economy sucks, layoffs suck, and best of luck to everyone laid off.
OCEANS RISE
CITIES FALL
QUINN REMAINS
OCEANS RISE
CITIES FALL
QUINN REMAINS
"In this economy, I'd be more willing to look at a "Gunner" from Iowa, Vandy, or Colorado than some middle of the curve entitled pussy from Harvard."
85 - I love it, well said.
is it true that every first year in NY was let go? even the bankruptcy and litigation people?
Black Thursday.
This is madness, absolute madness.
OCEANS RISE
CITIES FALL
QUINN FAILS AT HUMOR
Well, I guess this leaves WilmerHale as the only firm not doing layoffs, stealth or otherwise.
Any word on the class of 2007 or 2008 in today's layoffs? (Other than suggested wine pairings?)
Hey 84, don't sweat it. Remember during OCI, when people tried to read meaning into whether the interviewer gave you a pamphlet vs. a highlighter? Remember how it meant nothing? Same here.
Hahaha@jim mora...we'll have no mora that
No first years at Goodwin were laid off.
94 - Wilmerhale PPP's are actually up 2008, maybe that's why?
@85,
"In this economy, I'd be more willing to look at a "Gunner" from Iowa, Vand...."
.... however not everyone shares your view and there is a much better risk/reward for your debt at Harvard/Yale than at Iowa/Colorado if things really go south. nm
but no first years at Goodwin weren't not laid off either.
what about class of 2007 at Goodwin? safe?
Well, #'s 69 and 98 can't both be true. Which is it, were first years laid off or weren't they?
94: Great call, it becomes much easier to separate the men from the boys in times like these.
102 -- Are you delirious? Nobody is safe here. They hired 99 summer associates in Boston alone last summer. They need to make room for them. And they need to be able to pay for the London and Hong Kong boondoggles. And don't forget about all the brand new office space in California. And then there are the partners' ski houses. Start packing up your shared office.
102 -- Are you delirious? Nobody is safe here. They hired 99 summer associates in Boston alone last summer. They need to make room for them. And they need to be able to pay for the London and Hong Kong boondoggles. And don't forget about all the brand new office space in California. And then there are the partners' ski houses. Start packing up your shared office.
@100 This is true, if things keep getting worse than all bets are off. Certainly a top legal education has its benefits and I would wager that students from those schools will continue to benefit even if times stay tough. However, if things keep getting worse, firms will care about what you've done in school and out of school more than what school you got into.
There is no safety for average students in this economy. Granted, average at Harvard does afford one more opportunity, but those will dissapate as the economy worsens.
105,
Well, since HK and London are like 25 total lawyers at this stage, they can't be that huge of a money suck and it they can weather the current problems, having a foothold there will be important in years to come.
If anything, you'd expect them to combine the LA offices or combine SF and SV.
It's a sad day in Boston.
109 - see 44.
109 - see 44
Ex-Heller here. Let me tell you about the money pit that is London and Hong Kong. Without boots on the ground, i.e., over 100 in each office, the currency exchange rate and price of office space will kill you. Heller lost money for years on HK, then London, even though London was a billing machine and doubled in size in a year--to 25 attys.
Goodwin has 6 lawyers combined in their HK and London offices, not 25.
Anyone with information about how this affected offices in CA, particularly LA, please email/call. amanda_becker@dailyjournal.com; 213-229-5303. It can stay off the record.
Thanks!
113,
well they got 7 from heller for london, and two partners starting HK, so at least 9. i assume they have some support staff and such.
115 - not all of the people from heller went to the london office
If anyone knows how this affected the CA offices, particularly LA, please let me know. It will stay off the record.
amanda_becker@dailyjournal.com / 213-229-5303
115, trust me, 6 lawyers in HK & London, total employees in both offices, HK & London, 8.
Why do so many firms tend to make these announcements on the same day? Does anyone think that they coordinate with one another? Sounds illegal, but let's be serious...
they are all prolly in the business to layoff around the same time and once one firm does it, other firms see it as a good time to make their announcement and every firm starts following suit with the layoffs they've been planning
119 - Layoffs usually come at the end of the week. However, tomorrow is Friday the 13th, so out of some weird superstition, firms are doing it today. That's not to say firms won't lay people off tomorrow too...
117 -- 5 attorneys abroad...2 in HK and 3 in London. Although, that's as of today...I don't know how many we had yesterday. We must be hemorrhaging money. And about CA...I've only seen pictures, but those offices must've cost a small fortune to build-out. Crazy. Remember, though...partnerships exist for the benefit of the partners, not associates or staff. I thought the partners here were decent people. I admit that I was wrong.
Any word on the severance packages?
No first years at Goodwin were laid off.
No first years at Goodwin were laid off.
3 months
Hiring partners just sent out an email to the '09 summer associate class. It says that most of the layoffs were in Boston and that they didn't affect 1st years at all.
Kudos to Goodwin for not for not canning first years and letting them stay long enough to build up some experience. A number of other firms haven't been as generous and shoved the baby birds into the market with little hope of finding a new job.That's not to say first years won't be gone after their first review, just as Goodwin tries to figure out how to pay their SAs, but it's better than the alternative.
Kudos to Goodwin for not for not canning first years and letting them stay long enough to build up some experience. A number of other firms haven't been as generous and shoved the baby birds into the market with little hope of finding a new job.That's not to say first years won't be gone after their first review, just as Goodwin tries to figure out how to pay their SAs, but it's better than the alternative.
Hiring partners just sent an email out to the '09 SAs. It mostly echoed the statement in the original post. It did specifically say, however, that layoffs didn't affect 1st years.
Were the layoffs only in Bos and NY? Did they impact DC or CA?
CA definitely was affected
There are admin staff crying on many floors at GP-Boston.
How many of the 38 associates are (were?) in the Los Angeles offices? Any staff in either of those offices?
How many of the 38 associates are (were?) in the Los Angeles offices? Any staff in either of those offices?
Anyone know the exact number in New York? By floor?
@77 there seems to be ~900 attorneys total (partners and associates) at Goodwin which is where they are probably getting the 4%
what's a quinn?
a medicine woman??
Don't feel safe. You're not safe. Sorry.
WilmerHale has had layoffs - they are just more sneaky about it - I know from personal knowledge that staff has been let go and it is just a matter of time beofe the attorneys will be shown to the door.
141, Can you be more specific? How do you know this?
does anyone know how this was handled? were meetings scheduled with individual associates? before or after the email was sent....
141, how many staff? Which offices?
A few people on my floor here at GP-Boston were let go. Sad stuff.
"does anyone know how this was handled?"
Yeah, Regina personally devoured each affected associate.
conference rooms on 26th floor..3 of them..still goin on
141 here - have "friends in low places" and the inside track. Can't say too much more.
141 here - have "friends in low places" and the inside track. Can't say too much more.
conference rooms on 26th floor..3 of them..still goin on
No, done for the day.
so Im safe?
you aren't but I am
you aren't, but I am
so Im safe?
so Im safe?
any news on the breakdown among practice groups?
OCEANS RISE
CITIES FALL
QUINN REMAINS WITH EGG ON ITS FACE(BOOK)
@107,
100 here; I agree. At Harvard some were shut out at Oci this fall. Next fall will be a bloodbath.
Better to go into a specialized field like Intellectual Property.
Better to go into a specialized field like Intellectual Property.
Just to add a little color -- I was one of the affected. They handed me a taxi voucher and encouraged me to take the rest of the day off. I took a cab to my home in a suburb very close to Boston only to be told by the driver that the voucher covered a maximum of $26, and I had to make up the rest myself...
Rumor has it that folks who consistently met or exceeded hourly requirements were let go while others who had never met said requirements stayed put. Considering these were not performance-based layoffs (which took place late last year according to previous posts here), it makes you wonder what was said last week in the cloak room.
163 - That sounds right. I know of some really great people that were let go while some people that fully deserved to go were allowed to stay.
43,
Have you wanted to be a lawyer all your life?
Are you going to a top ten school?
Do you believe in your heart of hearts that you are smart enough and disciplined enough to be in the top of your class?
Are you getting any financial help, like a scholarship?
If the answer to all of these is "yes" then go. If you aren't sure about even one of these, ask for a deferral. You can work and decide to go in another year.
People who did not make their hours were let go in the "stealth" phase. This is going to hurt some feelings, but the second round was largely based on quality of reviews. That doesn't mean "bad lawyer", there are some very talented practice groups. But every group was expected to make some cuts (heavier cuts expected in the corporate group), and so with the low billing attorneys already gone, reviews became the basis. If you worked for a backstabbing partner, you were screwed. If you worked in a highly talented group, and had never received a bad review in 5 years, but were surrounded by people who received rave reviews, you were screwed.
This has created some bitter feelings among the partnership too. Many partners went to bat for associates in the past week and were shot down, important partners. Many partners offered to take huge pay cuts, and were shot down.
Tough times for a firm that preaches practicing your values in the practice of law.
166 - you're obviously an insider. Thanks for the scoop. What advice would you give those who survived? Simply keep up the quality of their work product? Or take the more extreme move of transferring to a practice group with less-than-stellar talent? Possibly strengthen ties with current partner-advocates while also seeking new ones (knowing full well that many partners went to bat for associates and still couldn't save them)? I'm all eyes.
162 - That is just cold.
One of the best things about Goodwin was the people. There are a lot of genuine, loyal people there - partners and associates alike. This is going to have a lasting effect on the culture there and it will probably be a long while before anyone knows what kind. Obviously it's hardest on those who lost their jobs, but it's not going to be easy for those who are left.
162 - That cab driver took you for a ride. There is no limit on those vouchers. Take your receipt in and get your money back from the firm.
Sad, but some greedy Boston cabbies don't want their cash profits eaten for the night by accepting too many vouchers. Sorry that happened to you!
160 - I hear the group at Brown Rudnick wants to expand their Intellectual Property department. The psycho who used to run it left a year and a half ago and they have a better person in place. A friend of mine has been calling to see if she could get an interview.
GO GIANTS!!
Goodwin's West Coast offices went pretty much unscathed. No lawyer reductions occurred in San Diego, 1 in Los Angeles, 1 in Silicon Valley and 2 in San Francisco. Still over 100 lawyers in California.
One door closes and another opens...the only way to look at the situation...
The only real way to protect your jobs is to have an agreement among associates that should there be another round lay-offs, all of you will seek alternate employment because it is too unstable at Goodwin. And then leak to partnership that such an agreement exists. Then, if there is another round of layoffs, it will kill the firm because the ones that are left, which are supposedly profitable, and thus, marketable, will leave.
I think a couple groups of associates at Goodwin, and some other law firms that underwent lay-offs last week already have agreements like this. Especially people in groups like IP LIT where the thinking is, "I am busy, profitable, and necessary for generating new work for the firm in this economic down-turn, yet I don't feel like I can do anything to guarantee my job". Nobody can work under those conditions-too much anxiety.
further to 174 - I'm just guessing here based on what the rational thing to do is. It's the economics grad student in me.
174/175 -- Get a clue. When you were applying to undergrad, did you have an agreement with your friends that you all only would go to the best school that accepted every single one of you? When you applied to law school, did you have such a deal? When you were applying to firms? I think most people here understand that, when it comes down to it, we're all grown ups and are responsible for our own destinies. The notion that folks should enter into some ex ante deal to all depart, in the middle of a horrible downturn for the legal services industry, just because one of their colleagues, who was probably selected for termination because within the affected group he/she was the weak link, is preposterous. If you're going to suggest collective action, maybe we can ask the guys responsible for the United Auto Workers to help unionize associates; we've seen how well that model has worked for the manufacturing sector.
Hey 176 - I see your point, but I think you misunderstood 174/175. The point is not to protect friends, but protect yourself. That's the question that popped into my head today: if you in a situation where you can't control your own destiny because there is a separate, absolute authority, what do you do? Try and externalize the costs. It's one option.
For me, it's just an academic question, since I'm a student and this wouldn't really affect me. It's an interesting one, though. And I only went to law school for one year, it wasn't for me, but I do keep tabs on what's going on (obviously).
Goodwin is the greatest law firm on the planet, everyone knows it. Just sayin
GP hiring partner was lying when he said no first years were affected by this round of layoff. I know as a matter of fact that a few first years who just joined GP last fall were axed in Boston.