Layoffs

Nationwide Layoff Watch: Sidley Austin Cuts 229 At Least

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It looks like Sidley Austin decided to just get it all over with today. We reported earlier that Sidley was planning layoffs, and now we have official firm numbers: 89 associates, 140 staff.

Above the Law obtained the internal memo sent out to all Sidley employees:

In addition to routine departures, 89 associates and staff attorneys and approximately 140 staff in our U.S. offices have been told their jobs are being eliminated. We have provided these lawyers and staff with financial and other assistance to help with their transitions. All affected individuals have been notified. The London office has also today announced a period of redundancy consultation.

As we reported earlier, 17 attorneys in London are on their way out. That accounts for over 20% of the associates in that office.

What should we make of the “In addition to routine departures” line? Clearly, it seems like some of the stealth layoff rumors have been true. Since the firm won’t release those numbers, we can’t say what the full Sidley damage report has been. But at least the firm didn’t try to layoff over 200 people under the radar.

What’s particularly interesting about the (now announced) “stealth” layoffs, is that Sidley specifically tried to calm its associates in the immediate aftermath of Lehman’s collapse. On September 16th, Sidley sent around an internal memo. We reported:

While Sidley Austin declined to comment to ATL on the Merrill Lynch/Bank of America merger, they did send around an internal memo to their associates. Sidley essentially told their people: “DON’T PANIC!!!!!!!!!”

Apparently, the firm opened up their books to show the percentage of their business that comes from the companies affected by the yesterday’s meltdown. Merrill Lynch represents well less than 10 percent of the firm’s overall business, so they think they should be fine.

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But September was a long, long time ago.

Read the full Sidley memo after the jump.


SIDLEY AUSTIN — MEMO — LAYOFFS

The economy continues to present unprecedented challenges to the Firm and its clients. While the quality and diversification of our practice and our conservative financial management have put the Firm in a strong position to deal with these challenges, we are not immune to the current turmoil.

Accordingly, we must continue to aggressively manage expenses in the face of the global economic downturn, and we have concluded that we must do what many other law firms have found it necessary to do: reduce the number of lawyers and staff for economic reasons. In addition to routine departures, 89 associates and staff attorneys and approximately 140 staff in our U.S. offices have been told their jobs are being eliminated. We have provided these lawyers and staff with financial and other assistance to help with their transitions. All affected individuals have been notified. The London office has also today announced a period of redundancy consultation.

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All of these lawyers and staff have been valued colleagues. However, this difficult decision was necessary to more appropriately align our staffing levels to the volume of work we expect over the next 12-18 months. A proper alignment of capacity to demand is not just about financial performance. It is necessary for keeping all of our personnel fully productive and professionally satisfied — and for the maintenance of our overall morale and competitive position. We ask for your understanding of the need to implement this difficult action.

Earlier: Impending Layoff Watch: Sidley Austin Associates, ‘Beware The Last Business Day Before The Ides of March’

Sidley to Associates: Be Cool Boy

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