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Nationwide Layoff Watch: Clifford Chance Lays Off 24 New York Associates, Pushes Back Start Dates

Thursday, March 26, 2009 1:00 PM - By Elie Mystal

Clifford Chance LLP Abovethelaw Above the Law blog.jpgClifford Chance has made a significant move today, as more firms try to find creative ways to handle the global economic crisis.

But first, let’s get the obvious stuff out of the way. Above the Law has learned that the firm is letting go of 24 of its New York associates. In a press statement from the firm, a Clifford Chance spokesperson reported:

Clifford Chance today told 24 transactional associates in its New York office they would be laid off due to continuing sluggishness in the market. The firm also anticipates laying off Business Services personnel in New York following a review that is expected to be completed shortly.

We also understand that some first year associates in New York were let go today.

Clifford Chance laid off 20 U.S. litigators in October, and a number of London attorneys in January.

But perhaps the more interesting news is Clifford Chance’s initiative for its incoming first years. Details after the jump.

The calls started going out this morning to Clifford Chance’s incoming first year class. After weeks of planning, the firm has decided to push back start dates until 2010.

But as firms all across the country try to come up with novel ways of dealing with the expected lack of work for first year attorneys this fall, Clifford Chance has one of the more complicated plans we’ve seen.

The firm will be asking around 20 incoming first year associates to start in January, 2010. Meanwhile, the rest of the class — around 30 associates — will be asked to start in October, 2010. The firm will ask for volunteers to defer through the fall of 2010. If they don’t get enough, we understand that there will be some sort of lottery to split up the class.

First years starting in January will receive a deferral stipend of $10,000. That’s about double the market for what other incoming associates will receive if their start date has just been pushed back to January.

For the full year deferral, delayed first years will receive $5,000 a month if they are able to secure public interest work. But a firm spokesperson informs Above the Law that Clifford Chance will still make some money available for associates who are unable to get a public interest position:

During months pro bono or public service work is not available — or if those being deferred choose to pursue more personal interests (e.g., travel ) — we will pay a monthly stipend of $3,335.

So, that’s about $40K for people who want to take a year off.

Both stipends are in addition to the $10,000 advance for bar related expenses.

Given that Clifford Chance is a little late to the incoming first year deferral party, it seems appropriate that it is providing a safety net for 3Ls who suddenly have to compete for public interest jobs with associates at other firms who have had more lead time to secure a position.

The Lawyer reports that Clifford Chance is also asking London associates to accept a similar offer:

The magic circle firm contacted trainees who were due to start in August 2009 and February 2010 last night to notify them of its decision. It is hoping that up to 15 per cent of the two intakes of approximately 130 trainees will defer for 12 months.

Deferred start dates are such a new phenomenon in the legal industry. We’ll keep you updated as firms continue to create this new method of dealing with the financial meltdown.


Clifford Chance NY Layoffs.pdf
Clifford Chance asks trainees to defer [The Lawyer]

Earlier: International Layoff Watch: Clifford Chance Knocks off 80 London Attorneys
Nationwide Layoff Watch: Clifford Chance (Redux) Twenty Litigators Laid Off, in NY and DC
Prior ATL coverage of start dates

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Posted in: Clifford Chance, Magic Circle, Start Dates

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