Archive for March 2009

locke lord logo.JPGIt wasn’t that long ago that Locke Lord was provided a lifeboat for a select few partners, associates, and staff from dissolving Morgan & Finnegan. But it appears that was a most temporary landing for the ex-Morgan & Finnegan employees. We’ve been fielding layoff reports from Locke Lord’s offices in Chicago, New York and most recently Dallas. A tipster adds:

Apparently it is affecting some people who were just brought over from Morgan & Finnegan too.

Right there, that’s the difference between driving a Lexus and driving a Lexis.

We have now confirmed with a firm spokesperson that Locke Lord did lay off approximately six percent of its associates and an undisclosed number of staff today. Locke Lord gave us the following statement:

These are extremely tough economic times for our country, and Locke Lord Bissell & Liddell is not immune. We have been cutting expenses and our budget while making prudent business decisions, but it is clear we are in a recession that continues to adversely affect us all. Our clients’ decision to cut back on outside legal services and the uncertainty ahead has led to a conservative reduction in our attorneys and staff, and we are deferring the start date of our new Associates to January 2010. At the same time, we feel strongly our firm fundamentals are sound, and we look forward to a long and vibrant future as we continue to provide excellent legal services to our clients.

In addition, the firm spokesperson tell us that only “two or three” of the laid off attorneys were from Morgan & Finnegan. But, our tipsters report that the M&F casualties were higher for former Morgan & Finnegan staff that had (briefly) made the change over.

Good luck to all the ex-Locke Lord people and ex-M&F Locke Lord people tonight.

Update (6:25): Texas Lawyer reports that Locke Lord also deferred start dates for incoming first year associates:

Additionally, the firm today notified its incoming fall associate class of 31 who were supposed to start in September that they will be starting in January 2010. The firm’s summer associate program will not be affected, she says, although “we will probably have a little less extravagant entertainment.”

Update (6:44): We now have a source telling us that 80-90 staffers were let go along with the attorneys. Altogether, this puts the layoffs today at Locke Lord comfortably over 100 people.

Layoffs at Locke Lord Bissell & Liddell [Texas Lawyer]

Earlier: Nationwide Dissolution Watch: Locke Lord Locks Down Morgan & Finnegan Laterals

Non-Sequiturs: 03.31.09

Corri Fetman sues Playboy.jpg* Sexually harassed by Playboy editors? Perhaps. Surprised? Certainly not. [Legal Blog Watch]

* We posted earlier today about Orrick’s West Virginia office. Now, there’s video. [The Shark]

* Actually, this isn’t how it works. People tip off Above the Law long before the partner shows up in anybody’s office…. Okay, sometimes it works exactly like this. [Legally Drawn]

* Chicago women unite. [Coalition of Women's Initiatives]

* Don’t forget to vote in the Elite Eight of our Safest Law Firm bracket. We’re keeping the polls open for this round through Wednesday. There is a really tight match going on between Cravath and Covington & Burling. [Above the Law]

Allen Matkins logo.jpgAllen Matkins, a mid-sized California firm, is the latest firm to offer the “hemlock package” of layoffs and salary cuts.

The layoffs at Allen Matkins were relatively small. Only about ten people, six of whom were associates, according to ATL tipsters. But the salary cuts were more substantial. According to one tipster:

First year salary has been reduced from $160K to $145K. A number of other associates (excluding first years) were informed that their salary would be reduced by 15% or 30%. Those associates were told that they were selected to receive “adjusted” compensation based on their hours, although the actual method for determining which associate would be subject to this salary adjustment was not disclosed and remains unclear.

Other tipsters weigh in after the jump.

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Arent Fox logo.JPGThere’s been a little confusion concerning precisely what Arent Fox is doing with its incoming associates. We told you earlier that the firm had pushed back start dates (some to November, others to February), but new information has come to light.

According to a spokesperson for Arent Fox. five 3Ls will be starting with the firm in November 2009, while the rest (21 incoming first years) won’t be able to start until February, 2010.

Our sources also report that the deferral stipend being offered to those February, 2010 first years is $5,000 — but that money is on top of the bar expenses. According to our sources, that money will not be paid out until November. Arent Fox declines to comment on the specific amount of its deferral stipend, as per firm policy.

After the jump, we explain why some commenters think that Arent Fox is “rescinding” offers to incoming first years.

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Robinson cole logo.JPGLet’s start with the good news. Robinson & Cole, a well known Connecticut-based firm, has named a new managing partner. John B. Lynch (Holy Cross undergrad, UVA law school) was elected managing partner of the firm yesterday. Congratulations.

Sadly, it appears that one of his first acts was to layoff associates and staff. Thirty people are out today at Robinson & Cole. Above the Law just obtained the following press release:

Robinson & Cole has eliminated 11 counsel and associate attorneys, and 19 support staff positions. These cutbacks are taking place among the firm’s seven offices in the Northeast. Other prudent expense reductions will be made across the firm.

“Meet the new boss. Same as the old boss.”

On the bright side, all systems are a “go” for Robinson in terms of incoming first years and the 2009 summer program. That’s pretty good news in today’s market.

Read the full statement from Robinson & Cole after the jump. Good luck to our brothers in UCONN territory.

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Notes from the Breadline Roxana St Thomas.jpgEd. note: Welcome to the latest installment of “Notes from the Breadline,” a column by a laid-off lawyer in New York. Prior columns are collected here. You can reach Roxana St. Thomas by email (at roxanastthomas@gmail.com), follow her on Twitter, or find her on Facebook.

Cliff does not understand why attorney layoffs — mine or anyone else’s — are, well, newsworthy. This comes to light when I show him what I think is a fairly remarkable story about a partner at Pillsbury Winthrop who, in a display of consummate indiscretion, broadcasted the firm’s layoff plans to his fellow passengers on the Washington-to-New York Acela train (via loud cell-phone conversation).

“Pretty fucked up, huh?” I say. He shrugs. Crickets chirp. “I don’t know,” he finally answers. “I don’t get it. I don’t get the whole thing.” I try to explain why I think the story is remarkable. First, there is the obvious matter of the partner’s imprudence, and the thoughtlessness of announcing personnel decisions that will affect people’s lives — people like me — to the passengers on the 2:00 train. Second, I tell him, putting aside the fact that widespread job losses are the foremost indicator of what feels like our profession’s implosion, they are often fashioned as “stealth layoffs.” Pillsbury had already engaged in some stealth layoffs, and although it is not clear that the partner’s unofficial press release (in the form of poor volume modulation) thwarted the firm’s plans for another, the possibility gives the story a “gotcha” quality.

But, it turns out, while the term “stealth layoff” may be part of every lawyer’s lexicon at the moment, it does not have universal currency. “What are ‘stealth layoffs’?” Cliff wants to know. Growing exasperated, I try to explain the pernicious “enhanced performance review,” and its insidious corollary, the “performance-based dismissal.” My indignation is not contagious: Cliff remains unmoved. “These are private companies,” he says. “I don’t see why they have an obligation to announce anything about who they choose to fire, or why.”

People get fired, he says: it sucks, but why should we expect law firms to act any differently than any other employer? Cliff has worked in advertising for the better part of two decades, where, apparently, things work differently; when he was working at big ad agencies, he tells me, people were fired all the time. In fact, firings usually coincided with payday, so if you got a paycheck you knew that you were safe for a little while longer.

Once, years ago, when he was working at one such agency, someone from management went around and put stickers on the doors of selected offices. Everyone who got a sticker assumed that they were going to be canned, so that later, when they were herded into a conference room, they were prepared for the ax to fall. Instead, they were told that they “were the future of the company,” but that everyone else was being told to pack up and leave. The chosen ones were then sequestered in the conference room until the unfortunate ones, who hadn’t made the cut, were shepherded out of the building. No one had any warning of what was about to happen, much less an expectation that they would get three months of severance.

I understand what Cliff is saying. “But,” I remind him, “you told me that the last few times you were fired, they escorted you out as you threw things down the hall and yelled obscenities.” I also recall him saying, at some point, “Wow, I can’t believe you’re still going into the office. I would be walking in with a can of gasoline.”

“I didn’t say that it doesn’t suck,” he concedes. “I just don’t understand why everyone thinks that these law firms owe them something.”

Is Roxana’s significant other being insufficiently understanding? Read her reflections on lawyers’ love lives, after the jump.

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Reed Smith.jpgReed Smith already laid off 115 people in early December. Here at the end of the first quarter, the firm has decided it needs to reduce headcount even further. Above the Law has been able to confirm that Reed Smith is letting go 26 attorneys and 74 staff across its U.S. and U.K. offices. A firm spokesperson provided us with this statement:

Specifically, we are initiating the outplacement of 17 associates in the U.S. and have started a consultation process in London that will potentially result in nine associate redundancies. All of the affected associates are in the corporate and real estate areas of our practice, where demand for our services continues to be slow. Overall, this action will affect less than 4% of all of our associates.

I should’ve learned, to play the guitar.
I should’ve learned, to play them drums.
Maybe get a blister on your little finger.
Maybe get a blister on your thumb.

These layoffs bring Reed Smith’s total cuts to 215 employees in the past four months. Let’s hope this is the last round. Good luck to everybody who has been let go today.

Read the full statement after the jump.

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If you’re a 3L or a clerk with a Biglaw job offer, congratulations. If you were hoping for a traditional start date in the fall, you may be a little disappointed though. Many a firm has pushed its start date for incoming associates into 2010.

Yesterday, Milbank Tweed informed associates that it’s pushing back start dates from October 2009 to January 2010. From a tipster:

This was done [Monday] afternoon by phone from partners (probably from the practice groups where incoming associates are slated to go) and an email went out later. Old Start Date: Oct. 19, 2009. New Start Date: January 25, 2010. $10,000 stipend + the $10,000 you can get as a salary advance + moving expenses + bar expenses.

Incoming associates at Arent Fox and Fulbright & Jaworski are also reporting that their start dates have been pushed back to January 2010. A spokesman from Arent Fox tells us that a lucky few still have the option to start this year though:

A number of third-year law students who were offered a position with Arent Fox will start on November 1, 2009 as previously planned. The remaining 3L students offered a position with Arent Fox have had their start dates deferred until Feb. 1, 2010…. Arent Fox is providing a stipend plus bar exam fees for those whose start date has been deferred.

We’ve got a round-up of start dates at over 20 Biglaw firms after the jump, most of them set to welcome new associates in 2010. We invite you to supplement start date information in the comments, or by e-mailing us with “Start Date Watch” in the subject.

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Georgetown Law logo.jpgThere’s an interesting job opening Orrick is extending to a number of recent graduates. We got this information from Georgetown University Law Center, but we understand that Orrick has posted this job at a couple of top schools:

Orrick, Herrington & Sutcliffe LLP (Wheeling, WV) – Orrick currently has an excellent opportunity for recent law school graduates in its Global Operations Center in Wheeling, WV. The position is an entry level Career Attorney in its dynamic and growing Emerging Companies Group (ECG).

The economy is bad. Everybody knows that. But are we really living in a world where students at the nation’s best law schools are looking at “career attorney” jobs in West Virginia? Not that there’s anything wrong with that. But this can’t be what GULC students were hoping for when they began their law school journey.

A tipster explains exactly what we are talking about, after the jump.

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lumberg law firm manager.jpgI wanted to circle back to a column that appeared in yesterday’s Washington Post and ABA Journal. A small firm “middle manager” wrote into the WaPo complaining that he kept hiring terrible associates:

I’m in middle management at a small law firm. Of every three associates we hire, we inevitably part with two within a year. The pattern is always the same: The associate is hired, struggles with his hours for the first few months, and then develops problems maintaining a responsible level of contact with clients. Then he struggles with deadlines, and finally when the partners and I are at our wits’ end, the associate pretty much stops working, stops billing and becomes a liability. We offer training and performance plans, we have scheduled weekly meetings with the associates, and we’re small so someone is always available for guidance. Is firing people just the way it is?

It sounds to me like this guy has a terrible eye for talent. The Washington Post (rightly, I think) highlights several factors that can help this guy become a better interviewer. But advice columnist Lily Garcia also offers this tip:

But there’s no guarantee your new associate will make it. If an employee is struggling, it is easy to assume it’s because of poor attitude or lack of ability. But environmental factors, such as an employee’s training, support and supervisory relationship, most accurately predict success.

If 66% of your people are washing out, it’s probably not because 66% of the law students you hire are functionally useless. I can’t imagine what firm the advice seeker works for, but lets hope management heeds this basic advice.

Explaining Your Credit History; and the Case of the Vanishing Lawyers [Washington Post]

Law Firm Manager Writes Post Columnist About Clueless Associates [ABA Journal]

Morning Docket 03.31.09

h rodgin cohen sullivan cromwell above the law copy.jpg* The American Lawyer gives you its list of the top 25 dealmakers of 2008. H. Rodgin Cohen of Sullivan & Cromwell came out on top thanks to his work on bank bailouts. [The American Lawyer]

* Judge James Munley ruled that teens taking naked cell phone photos of themselves does not constitute “child pornography.” Teens in Wyoming Pennsylvania, sext all you want! [Reuters]

* A California lawyer says she’s launching a Craigslist-like site for recent law grads and out-of-work lawyers to advertise their services. It sounds more like Match.com to us though. You’ve got to pay to create a profile pitching yourself. [AmLaw Daily]

* New York AG Andrew Cuomo sticks it to the banking Man, forcing JPMorgan Chase to drop a flat monthly fee from its credit card accounts. [CNN Money]

* Peter Madoff is appealing the ruling freezing his assets in the $2 million lawsuit filed against him by Brooklyn Law student Andrew Samuels. [Bloomberg]

* A highly unusual plea bargain in Maryland. Charges against a 22-year-old woman will be dropped if she testifies against other cult members… and her son rises from the dead. [Washington Post]

Skadden logo.JPGIs Skadden hurting more than people think? First, we learned that the firm was extending its Sidebar program in an effort to get associates to take a year off. On Friday, we reported that Skadden laid off over 50 staffers and greatly reduced its staff attorney program.

Above the Law just received a memo indicating that Skadden’s current first-year associates are being shipped over to litigation, for as long as six months. Here’s an excerpt from the memo that was sent to first-year corporate associates at Skadden tday:

Our first year program will now include a six month litigation component in which you will work under the direct supervision of lawyers from the general litigation, white collar, intellectual property/patent, antitrust and/or mass torts groups, both from the New York office and other firm offices. In order to implement this program fairly, all corporate associates will participate in the litigation component. One group will rotate into litigation in early April while the others will proceed to their previously scheduled “second” corporate rotation. In October, the groups will switch and those who were in the litigation rotation will be rotated to their other corporate rotation and those who have completed their second corporate rotation will rotate into the litigation rotation. We anticipate final assignments will occur in May 2010.

A six-month rotation through litigation for new corporate attorneys just starting their careers sounds like a polite way of saying, “we simply don’t have enough work to justify having all of these people hanging around.” When you couple that with the Sidebar program and the staffing cuts, this new information is sure to make people worried.

At least it’s better than layoffs. More after the jump.

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Non-Sequiturs: 03.30.09

Will Smith Pursuit of Happyness.JPG* What should you wear while pounding the pavement looking for a job? I suggest the Will Smith “Pursuit of Happyness” look, but there are other ideas. [Corporette]

* Because the real world doesn’t have its very own Kyle Broflovski, maybe we should all sign this petition? Whether or not its good policy, a student loan bailout would be just awesome. [Cancel Student Loan Debts]

* Wow. Marion Barry. That dude is still kicking around? He reminds me of herpes. [TaxProf Blog]

* A University of Florida professor got fired. You’ll see why once you click on the link (scroll down because the video is no longer on YouTube) and go to at least the 2:35 mark. [Legal Writing Prof Blog]

* Speaking of Florida, I’m just not sure how we can justify that state having so many electoral votes anymore. I mean, the professional wide receiver to competent individual ratio is way out of whack down there. [The Legal Satyricon]

* There is a lot of Spirit and Opportunity in this week’s Blawg Review. Now is a great time to look explore and imagine other planets, given how terrible mother Gaia is starting to look.

[Declarations and Exclusions via Blawg Review]

Manatt logo.JPGAs we follow the sun through its appointed circuit, we’ve learned that additional layoffs have occurred today out west. Manatt, Phelps has laid off 25 people today: 17 lawyers and 8 staff.

Here’s the statement the firm provided to Above the Law:

The broad economic slowdown continues to present challenges to businesses in every industry. The quality and breadth our national practice, as well as initiatives to improve resource utilization and reduce expenses, have positioned us to meet these challenges. Responsible stewardship, however, requires ongoing evaluation and appropriate alignment of staffing levels with client needs.

With this in mind, we have made the extremely difficult decision to reduce our lawyer ranks by 17 and our staff ranks by 8. Due to the nature and timing of these actions, we have provided those affected with financial and other assistance to help with their transitions.

We understand that the layoffs took place in the finance, tax, and advertising practice groups.

This is the second round of cuts for Manatt. We reported earlier that Manatt has already laid off 47 people since October, 2008.

A tipster also informs us that Manatt first years will be taking a pay cut:

Bill Quicksilver announced … that first year salaries would be reduced to $145K starting April 1. And no on campus recruiting.

Is this the new trend, lay people off while cutting salaries? It certainly appears that firms are trying to finish off this round of cuts before Passover and Easter.

Update (4:48): Additional details about severance after the jump.

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Stroock logo.JPGMore bad news on the last day penultimate day of March. We’re now able to report that the firm so nice they named it twice, Stroock & Stroock & Lavan, is laying off ten percent of its associates and staff. Here’s the statement from a Stroock spokesperson:

For some time, we have watched, with concern, as firms and businesses around the country have responded to difficult economic conditions through layoffs of hardworking, dedicated employees. Over the past several months, we have sought to avoid taking similar steps. However, the economic downturn has not abated and we have determined that these conditions require us to take similar action. So, today, we have reduced the number of associates and staff by approximately 10% firm wide. We remain well staffed to serve our clients and to grow when conditions improve.

These actions sadden us greatly, but under current economic conditions are unavoidable.

We also understand that that the firm will be asking certain associates to take a pay cut. More details after the jump.

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Judge DeBello above the law.jpgThe story of New Jersey Superior Court Judge Lawrence DeBello has the makings for a great romantic tale — the forbidden love between a judge and his law clerk.

From the New Jersey Law Journal:

A Mercer County, N.J., judge has admitted breaching judicial ethics and policies by sending romantic e-mails to his former law clerk via his judiciary e-mail account and by using his judicial office to help land her a public defender job.

The alluring law lovely, who has not been named, clerked for DeBello in Hudson County Family Court from 2006 through 2007. When she left, she and DeBello kept in touch, exchanging e-mails that discussed “personal matters” and used “offensive language”, according to the Advisory Committee on Judicial Conduct complaint [PDF].

DeBello unwisely used his judicial e-mail account for their correspondence, rather than opening a get_underneath_my_robes@gmail.com account. Even after being warned by his judicial superiors, DeBello could not keep his passion tamed:

DeBello admitted that at a December 2007 meeting with Hudson County Assignment Judge Maurice Gallipoli and Hudson County Trial Court Administrator Joseph Davis, he conceded the e-mails were inappropriate…. But after that meeting, the e-mails continued and even heated up. DeBello admitted that in December 2007 and mid-January 2008, he “participated in the escalation of the intimate tone and nature of those e-mail exchanges, which concerned their respective romantic feelings for one another.”

In January 2008, DeBello was transferred to Mercer County, but kept up the e-mails, trying to help the former clerk get a new job. He admitted he “used the power and prestige of his office” to advance her “private interests” by making an unsolicited telephone call to Deputy Public Defender Edward Marable — head of the Office of Law Guardian for the northwest region, who had appeared before him in court — telling him the former clerk was interested in a law guardian job.

Love obviously made this justice blind to the error of his ways. We just hope he got more than legal research out of his judicial Juliet.

DeBello has filed an answer [PDF] to the complaint which basically amounts to “Busted.” As Will S. said, the course of true love never did run smooth.

Judge Admits Ethics Breach Over Torrid E-Mails With Former Clerk [New Jersey Law Journal]

Judge Hit With Ethics Charges Over Steamy E-Mails With Former Clerk [New Jersey Law Journal]

Letter from London Queen.JPGEd. note: The legal world is much bigger than New York, or Washington, or even the United States. Welcome to Letter from London, a weekly dispatch from the other side of the pond. Our U.K. correspondent, Isaac Smith, will expose ATL readers to the latest goings-on in the London legal world. You can reach Isaac by email, at isaacsmithlondon@googlemail.com.

The G20 summit, accompanied by its anti-capitalist sideshow, arrives in London this week – and UK Big Law is feeling a little scared.

Law firms are warning employees not to wear suits on Wednesday or Thursday so as to avoid being targeted in the violent protests planned around London’s financial district.

Which provokes an interesting question: how ghetto does a corporate lawyer need to dress in order to avoid arousing suspicion as to their true identity?

We’ll soon find out.

It all seems a bit unfair, really. It’s not as if lawyers got the super big bonuses. And now their salaries are actually falling. If those nasty anti-capitalists had bothered to have a quick scan of The Lawyer last Wednesday, they’d have seen that Shearman & Sterling’s London office had followed Freshfields in cutting newly qualified associate salaries by 8%.

Are we going back in time? More after the jump.

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Fried Frank logo.jpgLate last week, we told you that bad things were coming down the pipe at Fried Frank. This morning, the firm announced that 99 people will be let go:

Effective today, we are implementing changes that will result in an overall reduction of 41 associates and 58 administrative staff from our U.S. workforce. This decision is one we worked very hard to avoid. But we must respond responsibly to the current environment. We would like to express our appreciation to everyone impacted by these decisions for all they have done for our Firm and our clients.

The economy is so bad that even firms that “don’t do lawyer layoffs” are having to do lawyer layoffs.

It’s not even surprising anymore that the firm is deferring all incoming first-year associates to January 2010. Fried Frank is also following the trend of asking associates to defer until the fall of 2010:

Additional steps announced today pertain to our fall 2009 class and our 2009 summer associate programs in the U.S. The start date of our fall 2009 class has been deferred to January 28, 2010. All incoming associates whose start date is deferred until January 2010 will receive a $10,000 stipend. We are also offering an opportunity for members of the fall 2009 class to defer until the fall 2010. We are encouraging those associates to develop their legal skills by pursuing a public interest or government position or by volunteering with a legal, political or community-based organization. Those who elect this deferral will receive a stipend of $70,000 plus health benefits.

And Fried Frank is cutting its summer program from 12 weeks down to 10.

Ninety-nine layoffs. Shortening of summer programs. Deferral of incoming associates:

I don’t like,
I don’t like,
I don’t like Mondays.

Read the full memo after the jump.

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Morning Docket 03.30.09

Supreme Court 6 Above the Law blog.JPG* Dahlia Lithwick likens the high drama at the High Court over who-will-retire-first to an Oscar Wilde play. [Slate]

* Holland & Knight was one of the firms that took part in the pre-Valentine’s Day massacre, but one practice group was actually hiring. It’s a good time to be a lawyer-lobbyist. [Washington Post]

* Dewey & LeBeouf may help the MGM Mirage unwind. [Swiss Press]

* Jury selection begins today for the trial of Brooke Astor’s son and lawyer, who allegedly took advantage of her Alzheimer’s to steal millions from her. The case has been getting media attention for years, but now (post-Bernie Madoff) It seems almost quaint. [New York Times]

* Solo practitioners and small firms are getting creative in how they bill. Some are even bartering. A cow for some document review perhaps? [National Law Journal]

This Week in Layoffs: 03.28.09

Law Shucks layoffs layoff tracker.jpg[Ed. note: Above the Law has teamed up with Law Shucks. Law Shucks has done excellent work translating all of the layoff news into user-friendly charts and graphs: the Layoff Tracker.]

Things are either quieting down or it’s just the calm before the storm. We suspect the latter. Although there were more people laid off this week than last, it was still relatively quiet, particularly compared to the beginning of the month. Still, first quarter results are being calculated and it’s not going to be pretty.

Life does go on for some. Freshfields kicked off the London firms’ partnership-announcement season with news that 14 associates had made partner – just more than half the 25 of last year, though. Surprisingly, nine of the 14 were in corporate practices. Not surprisingly, none were in the US.

Of course, the layoffs continue. Clifford Chance had its eighth layoff announcement – 25 transactional lawyers in New York this time (although we note that it’s sometimes difficult to track the UK firms’ layoffs because the redundancy process sometimes includes layoffs that have been previously or are later reported as if separate). Anyway, that brings the firm’s total up to 391 (210 lawyers, 181 staff) – good for #4 on the Top Ten list.

The other big news for the week was Dechert sneaking back onto the list when it laid off 125 people – 63 lawyers, 62 staff. That brought the firm’s total to 239 (144 lawyers, 95 staff), good for the #10 spot. This is another firm that just can’t get it right. The firm has had 5 separate layoffs.

News, analysis, and context, after the jump.

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