Nationwide Layoff Watch: Fried Frank Public(!) Layoffs

Late 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:

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

Read the full memo after the jump.


FRIED FRANK — MEMORANDUM — LAYOFFS

Dear All,

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Over the past several months we have seen substantial changes in the U.S. and international financial markets which have adversely affected our clients and the legal community overall. We have many long-standing and more recent clients for whom we continue to do substantial and important work and have continued to be involved in a number of high profile matters for them over the past 12 months.

The markets’ decline shows little sign of slowing, and many of our clients’ businesses are changing. To meet the challenges of these changes and after careful review, we have decided to reduce the number of our lawyers and staff, much like many other law firms around the country have found it necessary to do. We have made these hard decisions in the long-term interests of our business, the people in it and the ongoing requirement for their professional development.

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.

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. Finally, both of our summer associate programs in New York and Washington DC will now conform to a ten, not twelve-week schedule.

You will receive all the necessary information from your direct supervisor today about the changes. Please let us know if you have any questions.

Valerie Jacob and Justin Spendlove

Earlier: Nationwide Layoff Watch: Stealth Layoffs at Fried Frank