Nationwide Layoff Watch: Reed Smith Cuts Associates & Staff
Reed 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.
REED SMITH — STATEMENT — LAYOFFS
I am writing to let you know you that we are taking steps today to reduce our personnel capacity in the U.S. and UK. While we regret having to take these actions, they are a necessary part of our continuing effort to manage our firm effectively during this challenging economic environment.
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.
In addition, we are outplacing 55 support personnel in the U.S. in a number of departments and offices. We are also commencing a consultation process in London that will potentially result in up to 19 redundancies of support personnel. Taken together, these U.S. and UK actions will affect less than 5% of support personnel firmwide.
While most of our practices are performing well so far in 2009, our capacity has continued to materially exceed demand in certain parts of our transactional practice. Unfortunately, we do not foresee significant changes in this picture in the near or medium term. Under these circumstances, the need for prudent management dictated the adjustments we are making today. In addition to the financial impact, these changes will enable associates who remain to be more fully utilized.
The individuals affected by these actions have served our clients well and made valuable contributions to the firm, and we regret their departures very much. They will each receive severance and other assistance from the firm. We ask that all of you be supportive of them during this transition.
Earlier: Nationwide Layoff Watch: Reed Smith Cans Staff, Associates, ‘And Your Little Dog Too’
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Good luck to all those affected!
Second...... rate firm!
"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."
Wow. Even for a layoff memo, this is terrible writing.
Just realized that today is the end of March.
Who'll Stop the Rain would be a better lyric choice.
No, that's the way you do it!
http://www.cnn.com/2009/WORLD/europe/03/31/france.hostages.caterpillar.workers/index.html
"outplacement " ??? WTF? Why don't these stupid law firms call it what it is: lay-off, termination, letting go, etc.
Calling it a moronic term doesnt make it any better
outplacement? what a stupid word to use.
And the rest of it is junk too: why say "consultation process"? is the word process really needed?
"will potentially result" better to say "may result"
"Nationwide Layoff Watch: Reed Smith Cuts to Associates & Staff"
to?
LOL
"provide us with this statement" - ugh. Proofread.
7: "consultation process" is more or less a term of art in the UK - the firm is required by statute to go through a "redundancy consultation." So it's called a consultation process.
When is McDermott going to conduct yet another round of layoffs?
What the hell is an "outplacement?" Why don't they admit they are firing associates to protect partner incomes.
Outplacement? Who the fuck is the lame PR person drafting this shit? Next they will be referring to outplaced associates as pariahs that had to be banished due to the economic downturn.
I am a transactional lawyer in a V10 law firm. I am billing about 100 hrs per month. Before, I was a very high biller. Are others having the same experience? This is alarming.
I used to work in the Oakland office of Reed Smith and enjoyed masturbating in conference rooms as the natives rioted on the streets below.
Outplacement? What, so this is like a secondment to the unemployment office?
Jesus.
The associate outplacement process is in no way related to economic conditions. Rather, they are entirely due to performance factors becuase the let-go associates did not demonstrate a sufficient grasp of the firm's core competencies.
Reed Smith PR Department
@ 13 - i was in the same situation. but don't worry - the low billing came to an end. primarily b/c i was laid off yesterday.
enjoy those 100 hour months while they last. you should be working on a Plan B.
#13
I am in the same boat..Currently, applying to programs/ looking at other options. My firm will probably have another round of layoffs in May/ June since they bumped up the year end review process to May and like most firms have huge incomming summer classes
I'm going to the men's room and conduct some outplacement. You might want to stay clear for a while.
Did Micheal Scott write their slogan? I guess Scranton is pretty local for a Pittsburgh firm.
ReedSmith associates and staff are being ouplaced on the fucking pavement!
Reed Smith has also been doing stealth layoffs for months, including Counsel and Non-Equity Partners. The real number of attorneys that have been let go is much higher.
Right on #16
Heck, they might have well have added the following:
"The outplacement process is expected to fast-track the re-baselining of our practice areas and seeks to proactively enable the firm to satisty a balanced functionality going forward to 2010 without increased leverage. We regret to have been put in a position that forces such action but the metrics point in the direction we have taken today."
I got blisters on ma fingers!
The real number of attorneys that have been let go is much higher.
__________________________________________
Is there anybody left?
Elie = the fat mover in the video
Reed Smith
These people have more redundancies than I do
QUINN REMAINS btw
A more appropriate memo:
Due to the partners' greed
associates and staff must bleed
you should know that is the creed
before you accepted employment at Reed
This place is such a s*** show. I know a couple of people who had great regrets coming here. Stealth layoffs have been going on for some time (at all levels) of really good talent. I can't wait to get out of here - but the market as it is, I'm stuck. Best of luck to those affected. Truly.
Reed Smith
I heard a rumor that Reed Smith is going to merge with Lane Bryant.
I got your "outplacement" right here.
Here is an excerpt of an interaction that will take place at an unemployment office near you.
Ouplaced Reed Attorney: "What do you mean I am being denied unemployment benefits?"
Unemployment Case Worker: "You stated on your application that you were not terminated or fired. You stated that you were outplaced which is a category that is ineligible for unemployment benefits."
Outplaced Reed Attorney: "But I was fired, I mean outplaced."
Unemployment Case Worker: "We are done here. You can displace your outplaced or misplaced ass out of here."
22 & 30 are right - I was a stealth "outplacement" from a smaller office in October & wasn't the only one. Before leaving I was billing 100 hours a month in a litigation position.
Reed Smith: "The Business Of " being unable to bring in business. (Ahem, NY).
Reed Smith
The ship be sinking...
Robert Reed died from AIDS. He had colon cancer at the time of his death. RIP Reed.
Does anyone have the Latham memo floating around out there?
Does anyone have the Latham memo floating around out there?
Does anyone have the Latham memo floating around out there?
"NEW YORK (MarketWatch) -- Stocks remain on track to finish the month of March on a very upbeat note, posting their best monthly gains in nearly seven years and one of the top 20 months since 1950, which might bode well for the market a year from now, if history is any guide."
Don't they know the recession is over?
Reed Smith is a law firm.
I think 36 is dead on. RS is the classic example of a firm that has attempted to grow too fast in the wrong markets which is may be attributable to misguided leadership. The firm seems to believe it is so important to enter the huge markets (NY, London and HK) but in so doing incurs the inherent obligation/risk of the office leases in these cities. The problem is that despite its great litigation practice the firm only has an average corporate practice (at best) which doesn't really work with its model for expansion into these large cities. It seems that these leases could ultimately be the firm's downfall.
Reed Smith can't succeed in NY because I ponzied them out of all their money.... eyyyyyyy
I agree with #44.
Reed Smith is closing their Richmond and Falls Church Virginia offices on July 1.
Reed Smith is also closing its Virginia offices in Richmond and Falls Church in July.
Reed Smith is not a premier law firm, although I do agree it is a law firm.
Reed Smith is also closing its Virginia offices in Richmond and Falls Church in July.
Reed Smith is also closing its Virginia offices in Richmond and Falls Church in July.
48-52:
Doesn't Quinn work there?
28 - Quinn remains.... a crap law firm. We just pummeled your sorry asses into submission in a major litigation matter.
#44 is racist.
I guess Greg Jordan needed to layoff some more lawyers and staff in order to pay for the sign that Reed Smith undoubtedly will erect to compete with Pete Kalis' gaudy one that now offends the Pittsburgh skyline, courtesy of the associates and staff that K&L Gates canned for economic reasons. These firms cannot afford to pay salaries, but they can afford these big, expensive signs. The White House should recruit Jordan and Kalis to run the auto industry, because these two would fit right in with the imbeciles who flew private jets to beg money from Congress.
@ 29 -
BURMA SHAVE
Bring the steel rain!!
Were any of the affected Thelen ex-pats?
which offices were affected?
Anyone know what offices or groups were affected?
Greg Jordan and his wrecking crew (Eugene Tillman et. al) continue their brilliant leadership/experiment of trying to take over the world. Sorry fellas, adding 1200 new attorneys in five years doesn't make a first (or second) tier lawfirm.
56 - As a member of the Pittsburgh legal community, it is my recollection that Reed Smith announced that it would be erecting a sign on the new PNC Tower long before K&L even thought about erecting a sign on the former FreeMarkets/ARIBA building. Nevertheless, I agree....that sign will be going up which will serve as a painful reminder of mismanagement to the employees who have been part of each of the THREE rounds of layoffs at RS in the last year. This raises the obvious question of how can no one at the firm have the foresight to anticipate the employment needs of the firm for a few months down the road especially when it comes to staffing. An outplacing of 17 associates does not generally result in a staff layoff of 55 after there have already been TWO previous rounds of staff layoffs in the last 12 months....wow! the real question is who will be the firm's new managing partner/executive committee?
The real question is will there be anyone left to fill RS's new digs at 3 PNC.
But hey...they will have a big fancy sign to compete with K&L's big fancy sign.
In NY 5 corporate associates (in the same sub-group) and a greater number of staffers were let go. Not sure whether other offices were affected.
Which offices got hit? SF, LA, Oakland?
LA laid off 4 staff members, no attorneys yet
13:
Stop spending money now! Save every penny you can. Bring sandwiches to the office. Do anything you can to get more work and more hours. (I am sure you are trying that now, but do more.) Also come in early and stay late. You never know when a project may need to get done. If you are in the office you at least have a chance to get some more work.
Kiss the ASS of every partner possible. Blow a few if you are female and they are male. If not, give it a try anyway, it can't hurt, it just won't taste all that great. If there are real female partners get down on your knees. It doesn't matter if you are male or female for this one.....
If your hours do not increase now you will be laid off in 2-3 months. Even if your hours increase, you better hope your six month average is closer to 200 than 100 or you are toast anyway. You might want to get your resume out now, never too early to start looking. At least you still have a job.
Did I mention it, stop spending money. Essentials only and nothing else. You will need the cash soon.
Where did you hear they are closing Falls Church? Can anyone confirm this? Will all of those attorneys be let go as well?
@ 29
you forgot the last two sentences to your memo:
now before you leave on your steed
bend over so I can deposit my seed
I think 45 is dead on ! Quite simply, it's been a goddamn house of cards ever since the Great Expansion (Great Leap Forward...?) got started. Anyone with half a brain has been able to see the emperor's new clothes for quite some time.
Reed Smith is not having layoffs because of their expansion over the last 10 years, they are laying off because they are a leveraged law firm in the middle of a pretty severe economic recession. If anything, the expansion has probably softened the blow since clearly PPP has gone up faster than if they had stayed in PA. Has the culture of the firm changed for the worse? Of course. Was there a choice? Doubtful, see Wolf Block in Philly.
Doubt any offices will be closed. There are a few really small ones, but little overhead and no sense in closing them without a valid reason.
Look out K&L Gates associates in Pittsburgh. We all know that K&L does exactly what Reed Smith does, just a few months later. My guess is that you have until Memorial Day before the hammer comes down again. The "leadership" (Kalis and Zanic) has their cover now and will take advantage of the Reed Smith shadows once again.
The fact is, this firm started going down when it removed the Shaw and McClay. Dechert when it removed the Price and Rhoads. Blank Rome when it removed Smith and McCauley. Morgan Lewis when it removed Bockius. These Philly firms tried to brand themselves as something they NEVER were-- as national big firms when in reality, they were just local peanuts. Especially that Blank Rome piece of shit. They didn't fool anyone.
The Oakland office is set to be closed in 2010. FACT!
Oakland closing to conslidate across the bay in SF. No? How does that not make sense from a biz standpoint?
I'm a senior associate at a V-10 firm, and have to laugh at this thread. Funny how folks are comparing Reed Smith to K&L Gates just because they both are "Pittsburgh" firms. We consider K&L a competitor but not RS. Indeed, RS can't even hold K&L's jock anymore. It's not even close.
You're a SA and are brought in by the senior partners to discuss competitors at the V-10 level. BS. I agree with you about RS, but I suspect you're holding ("clinging" to) jocks. That call, is "not even close".
You're a SA and are brought in by the senior partners to discuss competitors at the V-10 level. BS. I agree with you about RS, but I suspect you're holding ("clinging" to) jocks. That call, is "not even close".
Jordan and the rest are such liars when they say they have not let go of partners (both E and non E). When he talks, it is a prism ,of which when I look through it all I see is black. I hope clients (or their underlings) are reading all of this. And, I agree with all re: the writing of the memo. It was awful.
Reed who?
Reed who?
Yo, assholes, this motherfucker's dead!
They should run Jordan out on a rail for all the damage he has done to RS. More layoffs and revoking of offers are sure to follow.
The layoffs were referred to as a "capacity adjustment". **blank stare**
Reed Smith Oakland no longer has a summer program and has been conducting aggressive stealth layoffs since end of 2007. 2010 sounds about right.
How about the Sachnoff & Weaver equity partners in Chicago who blindly and eagerly drank the Reed Smith Kool-Aid and overwhelmingly voted to merge with RS? It's worked out great, huh?
Chicago was affected too (I think it's the 4th layoff). Beware if RS ever wants to merge with you because they will lie to your face that your culture will stay the same. RS had EVERY intention to downsize Chicago staff after the merge (March 2007) proven out with an article in the Pittsburgh Post-Gazette (8/13/08) by their Chief of Office Services that was posted on their internal internet site only to be taken down the next day and even removed from their archives because it tipped staff off of as to what exactly was in their future. Their answer to actual secretaries in all their global offices is the Pittsburgh Business Center, staffed by college graduates, off-site from where the lawyers work. The Business Center work product sucks. Guess those lofty lawyers don't want to be bothered by interaction with lowlier staff. Economic conditions have just given RS a convenient excuse to work their pre-planned mayhem. Awful awful firm -- but what goes around, comes around. Good luck to those who remain.
Has anyone heard anything about first year start dates? Getting nervous....
this class of reed smith first years is screwed.
2 and a 1/2 months severance was given to the "outplaced" associates. That's nice...you no longer have a job and we're giving you 2 weeks less severance than your peers are getting.
Just one more f**k you as you are getting your pink slips...
91- Word.
I worked on a deal with some senior guy a year back at RS, and on this follow up deal we just started (thank God) found out he was no longer with the them. Now I'm dealing with a Partner who HAS NO IDEA what he's doing. Corporate practice (in NY) for this guy is just that - practice.
What isn't mentioned is that the partners received bonuses throughout this process. Sounds a little like AIG.
Although firm bashing seems to be sport around here, Reed Smith is a fine firm, as are many of the other firms regularly vilified on this board. Layoffs are unpleasant, but they had to be done.
People just call them like they see them - just like in sports......, Sport.
Re: 95, is that you Eugene Tillman?
its not just Reed Smith, but all firms that just suck. Horrible business model when every decision is based on the short-term, when all profits are disbursed each year, when lawyers are not subject to non-competes, and you compete with the competitors based almost entirely on income. Real estate and corporate made this firm tons of money in recent years, but the second the market slows they dump them overboard. Nasty business.
No wonder a number of my classmates never interviewed with this place. Wow.
GFY ReedSmith. You will regret laying off some of your best attorneys.
GFY ReedSmith. You will regret laying off some of your best attorneys, especially when the partners actually have to start working again.
when partners read the nasty comments on boards like these, it makes them want to lay off even more associates.
102 - Truth hurts. Grow up.
103 - you are fired! good bye.
Violating the WARN Act?
There is no mention of the bonuses the partners received. Sound familiar?
Go "team"! - What a joke.
BEWARD REED SMITH EMPLOYEES--BIG DADDY IS WATCHING
HOW TO LEGALLY SPY ON EMPLOYEES
Hewlett-Packard has given spying a bad name. But when former Chairwoman Patricia Dunn spearheaded an investigation against board members, staff and journalists, she was, in a way, simply following a nationwide trend. As technology has improved, risks have increased. As a result, most corporations are now monitoring their employees closely.
Press leaks, theft of trade secrets and time wasting are big concerns. But the main reason is fear of lawsuits, says Nancy Flynn, executive director of the ePolicy Institute, a consulting firm that helps companies develop monitoring policies. Almost 25% of companies have had employee e-mails subpoenaed because of a workplace lawsuit, usually involving harassment or discrimination. "Employers need to view e-mail as the electronic equivalent of DNA evidence," says Flynn.
While employees may have been slow to get the message, corporations are catching on. More than 75% of employers monitor their workers' Web site connections, according to a survey by the ePolicy Institute, a consulting group. About half of all companies store and review computer files, and 55% read e-mail messages. About 26% of firms have fired workers for misusing the Internet.
In Pictures: Are You Being Watched?
But what if companies misuse their spying programs? That's what happened at HP. The computer giant hired private investigators who used a tactic called pretexting, or posing as someone else to gain access to their phone records. Investigators tailed reporters, dug through trash and sent a reporter a fake e-mail that contained tracking software. Most of these tactics are slimy, but legal. Pretexting, however, is not. Without permission, there are only two ways to get phone records legally: Obtaining a warrant or digging through the trash.
Dunn has been charged with four felonies; so has Kevin Hunsaker, the company's senior counsel and chief ethics officer. (See: "Chief Ethics Officers: Who Needs Them?") But breaking the law wasn't HP's only mistake. Here are five ways corporations can run a legal, ethical spying program and stay out of the headlines.
Try Google first. There are a lot of ways to obtain information without breaking the law, says Efrem Grail, a partner at law firm Reed Smith. The Internet is an obvious place to start. And instead of targeting personal phone records, look at company-owned records first. Who have your employees been calling on their office phones?
Check out personnel files for context, says Grail. Is someone living in Beverly Hills, Calif., on a salary that should relegate him to a less desirable district? That might help you learn who could be stealing and selling company secrets. Don't forget public documents like property records, credit reports and criminal histories. Grail once discovered that someone had applied for a fishing license in Alaska on a day when he was supposed to be somewhere else, working for his employer.
Be honest. When Dunn became concerned about boardroom leaks, she should have tried openness first. "HP might have avoided a lot of headlines if they had simply gone to their board members and said, 'Can we have your telephone records?' " says Jim Moorhead, a partner with law firm Steptoe and Johnson.
If that didn't work, one-on-one interviews with board members might have been a good next step. That would have given directors an opportunity to air their grievances and possibly even confess. "You'd be surprised what people say. All you have to do is ask," says Ted Frank, president of Axentis, which makes software that helps companies manage regulatory compliance issues.
Create a policy--and make it public. The honesty policy also applies to ordinary workers. Employers should establish a written policy about computer use, says Flynn. And don't just put it in a vault. Make sure workers know what's appropriate, and what's not. Then, establish consequences for those who violate email and Internet policies. Some companies fine their employees as much as $1,000 for a first violation, Flynn says.
Be nice to journalists. Reporters jumped on the HP scandal for the obvious reason that it's a very juicy story. But they really dug in when reporters learned that they were actually targeted by HP's spies. One of the targeted journalists, Pui-Wing Tam, wrote a front-page story in The Wall Street Journal on Oct. 19, detailing what she knew about the surveillance. That spawned even more stories, when the Associated Press picked it up.
Brush up on all those pesky legal issues. Privacy laws vary widely across state and national borders. Americans have fewer privacy protections than Europeans, but even within the U.S. laws vary widely. Delaware and Connecticut, for example, require companies to inform employees if they're being monitored. Californians have a right to privacy enshrined in the state Constitution. All of a company's investigators should have an understanding of these laws--or know who to call for advice.
In Pictures: Are You Being Watched?
Go Rangers!