Proskauer Profits Take a Tumble
Back in December, we reported that Proskauer Rose laid off 35 associates and 25 staff. We believe that the firm fired first-years as part of the layoffs. Proskauer said it was taking these actions in response to the “worldwide economic crisis.”
Yesterday, AmLaw Daily reported that Proskauer partners also felt the pain of 2008:
Proskauer Rose’s profits per equity partner dropped 10 percent in 2008 to $1.4 million. Revenues increased marginally, by 1 percent, to $634 million in 2008. Revenue per lawyer dipped slightly to $916,000, as did head count: total attorneys went from 685 in 2007 to 692 in 2008.
In this economy, Proskauer chairman Allen Fagin was reluctant to complain about $1.4 million dollars per partner:
Fagin echoes other law firm leaders when commenting on his firm’s performance this past year, saying that, given the challenges, he is satisfied. The results “put us in the vicinity of most of the firms we would consider peers,” he says — the group, according to Fagin, includes Mayer Brown and Latham & Watkins.
Let’s see: Mayer Brown laid off 33 attorneys in November, and Latham is doing Latham things, so it sounds like Proskauer did a pretty good job when picking its “peer firms.”
And there might be more layoffs on the horizon for Proskauer:
Fagin says there is an “ongoing examination” to ensure that staffing levels are right.
In the words of the late, great, Mr. Arnold: “Hang on to your butts.”
THE AM LAW 100: Proskauer’s Profits Fall 10 Percent, Revenues Up Slightly [AmLaw Daily]
Earlier: Nationwide Layoff Update: Proskauer Rose
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FIRST!!!!
Second!
The ship be sinking...
I guess this means that Proskauer won't be opening a philly office. another crushing blow to the dreams of the UPenn State satellite campus in Philly. Will they EVER get their employment numbers high enough to crawl out of the fourth tier?
"Revenue per lawyer dipped slightly to $916,000, as did head count: total attorneys went from 685 in 2007 to 692 in 2008."
Isn't 692 more than 685?
any of you laid off associates moving home with the parents? http://www.bettyconfidential.com/ar/ld/a/You_can_go_home_again.html
Only 2 days until Thursday (aka BigLaw Layoff Day)!
Didn't Proskauer cancel their proposed move to a new HQ? If their Times Square lease is up in a year, where do they expect to conduct business? (or do they expect to conduct business?)
To be sure, 1.4 mill is a lot of money...but a PPP of 1.4 million is pretty low. He may want to rethink the firms he considers "peers."
1.4 million kind of sounds like......TTT.
9- Yea, he shouldn't troll for Latham like that
I guess Elie's happy when he sees that his weight is 692 pounds because it's "dipped slightly" from 685 pounds.
Funny: "Latham is doing Latham things"
elie, it's "hold on to your butts" -- can't even get a simple quote right
Going from 685 to 692 in total lawyer head count is not "dipp[ing] slightly," Elie.
7, are you referring to Latham's soon to be announced massive layoffs? First and second years will be hit very hard. I'm surprised ATL has not done a story on it yet.
Happy Mardi Gras everyone!
umm, Mystal didn't write the "headcount dipping" sentence. That was the AmLawDaily who screwed that up.
Reading comprehension much?
Proskauer is a bunch of d-bags.
Proskauer is a total TTT. But they can believe they are great if it makes them feel good.
If Fagin is the Proskauer chairman, does that mean the Artful Dodger is the managing partner?
"They still call it the White House, but that is a temporary condition."
Proskauer is a firm in gradual decline which has grown largely through mergers and laterals from failing firms. Its layoffs in December were not well thought out, were unduly focused on first and second years whose performance had never been responsibly evaluated , and one result likely will be another round, as intimated in Fagin's statement. Profits pp for 2009 (fiscal year ends Oct. 31) could drop more than an additional 10%.
Something doesn't make sense -- Revenue went up, while the number of attys/associates (and staff) decreased, and I'm sure these cheap ***__*** cut other costs aggressively too...
Could it be that opening up 4 new offices in the last year and a half could have had something to do in PPP decreasing a bit?
21 and 22 are correct. They wanted the benefits of opening up new offices without incurring any of the costs. Awful economic planning. Maybe the CFO should be next to go.
Not to mention the 20 extra summers they hired, showing they do not value current employees and are just one big poorly-run public relations machine.
23, they are good at PR and have one of the better BigLaw web sites. But if you dig below the surface, things appear to be as much show as substance. Many of the clients listed on their site as current may not be.
I think their incoming summer class is around 70. This past September, recruiting actually told their associates to "talk down" the firm to any 2L calling for information in hopes that the 2Ls would go elsewhere. Their 2007 summer class was around 40 (only about a half of them are still left). It looks like Proskauer excessively has overhired over the past 12 months.
8-Either their current landlord will cut them a huge deal to stay, or they find comparable space at 30-40% less. Might actually save a few associates their jobs. Even if their job might be to move a bunch of boxes.
Pie cutting reportedly has left some partners more than a little unhappy and we could see some movement (out) at that level as well later this year.
What about the bankruptcy guys they just lured away from Winston? Those guys change firms when the sun comes up so I wonder if they will ditch out!
28, minimal chance of them bailing this year, regardless of circumstances. Next year may be a different story if the ship isn't righted.
To whom did Fagin make his comments regarding the possibility of further layoffs?
Does anyone seriously think that this TTT firm will survive more than another year or two?
I heard they fired their entire first year class from last year in Boston. Guess they decided that no 2nd years were needed since the firm isn't doing well (to say the least).
Friday the 13th is coming.. A day after a town hall meeting, time to start cleaning my office?