Archive for March 2009

Non-Sequiturs: 03.04.09

By Elie Mystal

Wyeth logo.jpg* Some reactions to the Wyeth decision. [Drug and Device Law]

* And there are still questions about whether the Roberts Court can still be called “pro-business.” [The Volokh Conspiracy]

* We’re not sure if this is the right time for Jeff Toobin to remind people that he is married. [Gawker]

* Either Brad Pitt uses Bingham McCutchen, or he’s doing research for the next Grisham movie. [Perez Hilton]

* It’s time to get excited about the law school rankings. They should be coming soon. [California Lawyer]

* People will be paying attention to those rankings when they are released. Law school applications are actually up, according to LSAC. [Legal Writing Prof Blog]

* And where are all of those new law students going to find jobs? Soon, even Legal Aid could be a hard get. [Litination]

* Maybe they can open a solo practice? You know, just to pass the time until that bartending certification comes through. [Legal Blog Watch]

Nationwide Layoff Watch (Sort Of): Haynes & Boone Makes Minor Adjustments

By Elie Mystal

Haynes Boone logo.jpgTechnically, there were layoffs at Haynes & Boone yesterday. But our cadre of Texas readers don’t need to start storing canned goods in their hats just yet. The Texas based firm made minor cuts to its New York office. A firm spokesperson released this statement to Above the Law:

We can confirm that Tuesday, Haynes and Boone terminated one associate, one of counsel and one staff in our New York City office.

These terminations resulted from the upcoming departure of two New York-based corporate partners who are leaving by mutual agreement. Affected attorneys and staff were recruited specifically to support the departing partners.

Just as importantly, the spokesperson adds:

At this time, we don’t expect any further attorney or staff layoffs in our New York office or in any of the firm’s other eleven national and international offices.

Haynes and Boone continues to look for good opportunities to strategically expand in New York and in other markets … We expect to add new partners to our NYC Finance and Bankruptcy groups soon to meet current market demands.

Add partners? Finance? Demand? Are we talking about the same “New York City?”

Though, if Haynes & Boone is looking to poach partners, maybe managing partner Terry Connor will get to scream “I drink your milkshake. I drink it up!” That would be fun.

Earlier: Law Firm Merger Mania: Haynes & Boone Signs Up for New California Adventures

  • 04 Mar 2009 at 3:58 PM
  • Layoffs

Nationwide Layoff Watch: Wiggin & Dana Proves There’s Nowhere to Run

By Elie Mystal

Wiggin Dana logo.JPGGiven the massive layoffs happening at major firms all across the industry, the plight of people at prestigious regional firms is easy to overlook. But make no mistake, nobody is safe from the recession.

We received word today that the Connecticut firm, Wiggin & Dana, laid off a number of associates yesterday. Here is the firm wide email announcing the news:

In January, we reported that the worsening economy had affected Wiggin and Dana in the same way that it has challenged all businesses, including our clients and other prominent law firms. We announced then that the firm had eliminated 14 administrative staff and paralegal positions. As part of our ongoing review of operating expenses and in connection with our continuing efforts to reduce costs across-the-board, we have further concluded that a reduction in our attorney ranks is necessary. After careful consideration and with great reluctance, we have decided to reduce our attorney ranks by 14. These reductions took effect today, and we have met with each of the 14 attorneys to inform them of our decision.

We value the contributions of the attorneys, paralegals and staff affected by the reductions and regret having to make these decisions. We recognize that our former colleagues face challenges without jobs in these difficult times, and we will assist them as they attempt to reposition themselves.

According to NALP forms, the firm lists about 148 attorneys across all of its offices. The 14 laid off attorneys represent just under ten percent of the firm’s total attorney complement. But they represent roughly 22% of the the firm’s associates.

There’s been a lot of that going around.

Earlier: Prior ATL coverage of law firm layoffs

Pillsbury: Attorneys Brace For ‘Involuntary’ Departure Program

By Elie Mystal

Pillsbury logo.JPGA week ago, we brought you news about Pillsbury’s “Voluntary Departure Program.” The firm adopted the program after partner Robert Robbins announced the firm’s impending layoffs on the Acela last month.

On Tuesday, Pillsbury informed associates who requested voluntary departure if they had been accepted. We don’t yet have the numbers for how many people decided to go quietly.

But we do have the official Pillsbury FAQ for people who inquired about the program. The seven page document contains some very interesting nuggets. Below, we paste the top line points:

Pillsbury departure FAQ pafge 1.JPG

Shouldn’t everybody who was employed throughout 2008 receive the 2008 bonus, regardless of what happens to them in 2009?

In any event, it looks like Pillsbury is moving full speed ahead with the “involuntary” part of the plan. All aboard after the jump.

double red triangle arrows Continue reading “Pillsbury: Attorneys Brace For ‘Involuntary’ Departure Program”

Nationwide Layoff Watch: O’Melveny Fires 90 Lawyers, 110 Staff

By Elie Mystal

omelveny logo.JPGFirst Latham, then Orrick, now O’Melveny.

Yesterday, we mentioned that layoffs could be coming to O’Melveny & Myers. Today, the rains came.

A firm-wide email just went out announcing that 200 people would be let go. The cuts amount to about ten percent of attorneys and ten percent of staff:

It is against this backdrop that I am writing to inform you about some very difficult and unprecedented decisions we have made affecting lawyers and staff. We will be reducing approximately 90 legal and 110 staff positions from our Firm. The majority of the positions are in the US, with some in Asia and a smaller number in London. Altogether the reduction will impact roughly 10% of our lawyer workforce and roughly 10% of our staff workforce.

Is ten percent the magic number that firms are now trying to get rid of?

As we understand it, O’Melveny will be giving a three-month severance package. Latham wins the severance wars again. On the other hand, Latham laid off 440 people, which is just a little less than O’Melveny and Orrick combined.

While many of the O’Melveny people do not yet know if they will be part of the layoffs, the firm did send a message to all of its incoming summer associates. The future summers were informed of the bad news at the firm and told that summer program would be scaled back to a ten-week experience.

For those keeping score at home today, we’re looking at 60 people from Shearman & Sterling, 130 people from Dewey, and now 200 people from O’Melveny that are being let go today. Black Wednesday? Humped Day?

UPDATE (12:57): O’Melveny has released some additional news about its severance package to Above the Law. For some people, the package could be better than what is being offered by Latham. A firm spokesperson tells us:

Departing associates and counsel will receive a payment that is equal to 3 months as a minimum and 7 months as a maximum, based upon completed years of service, with two weeks for each full year of service, with no cap on the dollar amount. More importantly, our Firm provided meaningful bonuses in December of 2008, and significant salary increases in January of this year, which was not the case at all firms. We want to be fair and generous with those who remain, as well as those who depart.

These are both good points. As we’ve pointed out in the past, O’Melveny matched the Skadden bonus (except for NYC) for people who billed 1950 hours. And while Latham froze salaries, O’Melveny did not.

We’ll keep you posted. Read the full memo, after the jump.

double red triangle arrows Continue reading “Nationwide Layoff Watch: O’Melveny Fires 90 Lawyers, 110 Staff”

An Offer for ATL Readers from PLC

By David Lat

Practical Law Company PLC logo.jpgLast month, our friends at Practical Law Company (PLC) invited Above the Law readers to their launch party. This month, PLC has another special offer, also for readers of ATL.

Back in this post, we described the services provided by PLC. But it’s so much easier to check them out for yourself — and now you can do just that. PLC is offering ATL readers a free three-month trial. (Normal trials through the site are three weeks.)

To take advantage of this offer, just email PLC at info-us@practicallaw.com (subject line: “ATL Special Offer”). E-mail PLC from work (if you are working) or law school address if you are still in school. Thanks!

Disclosure: PLC is an ATL advertiser.

Earlier: Prior ATL coverage of PLC

(Dated) Nationwide Layoff Watch: Schulte Roth & Zabel

By Marin

schulte logo.JPGWe’ve been receiving reports of layoffs at Schulte Roth & Zabel since last summer, but were unable to confirm them until now. These days, it can be difficult to differentiate between layoffs and performance-based dismissals.

Schulte’s spokespeople say all dismissals in 2008 were performance-based. They deny any recent layoffs in their office, saying that any departures in 2009 have been voluntary. Between 20 to 30 associates left in the fall; “approximately” 20 of them were let go for performance-based reasons after their reviews in November. The others were supposedly voluntary departures. The firm said this is not out of the ordinary and is “business as usual.”

The recent involuntary departures in Kirkland’s NYC office, which are now pegged at “at least” four associates, were described by a source there as “performance-driven, market-boosted.” That may be the most succinct phrasing we’ve heard yet.

One of those laid-off from Schulte informs us there was no severance package, though associates were given 2-3 months notice at Thanksgiving, asked to leave at the end of January or the end of February. Back in the day, that is how true “performance-based” dismissals went down. Back in the day, the firm would say, “Hey, we like you. But we don’t love you. We think you might be better off with someone else. We’ll let you hang around for the bonus, but then you should shack up with someone else.”

But these days are different. Those who were asked to leave were considered “not in good standing” with the firm. Though they were allowed to hang around ’till January/February, they did not get bonuses or pay raises.

But enough about Schulte’s past, what do people think about Schulte’s future? Send in your stories to tips@abovethelaw.com and we’ll try to track them down.

The Asia Chronicles: CHINA RECOVERY IN ’09?

By Kinney Recruiting

AC Help for china ed.JPGAsia Chronicles logo.jpg[Ed. note: This post is authored by Evan Jowers and Robert Kinney of Kinney Recruiting--sponsor of the Asia Chronicles. Kinney has made more placements of U.S. associates and partners in Asia than any other firm in the past two years. You can reach them by email: asia at kinneyrecruiting dot com.]

Evan here. As promised, in this post we will provide some basic evidence of encouraging signs that China’s economy could recover in ’09. Our new Hong Kong based recruiter, Alexis Lamb (Texas JD ’04, former associate at Linklaters’ HK and O’Melveny NYC), contributed to this post. As always, we welcome your comments, whether you agree or disagree (yes, including doomsday commenter #4 from last week), and I will try to timely respond to all of them.

As mentioned in previous AC posts and comments, we are, naturally, in frequent conversations with law firm partners and other business leaders in Asia, and the prevailing opinion, even from the most conservative and pessimistic, is that the major law firm deal flow in China could recover somewhat, if not yet to previous recent boom levels, by second half 2009 and that 2010 will likely be a good year. Keep in mind that the downturn hit China about one year after the US markets and it will likely recover well ahead of the US markets.

The Chairman of Morgan Stanley Asia Limited, Dr. Stephen Roach, has predicted recently that China’s economy will recover by the second half of 2009. In contrast, Roach predicts that the U.S. is only 20% through its deleveraging cycle and it will be a number of years before adjustments are complete. Merrill Lynch & Co., Hong Kong, economist Lu Ting: “China looks set to be the first major economy to recover from the current global meltdown.”

More after the jump.

double red triangle arrows Continue reading “The Asia Chronicles: CHINA RECOVERY IN ’09?”

Impending Layoff Watch: Orrick Ax To Fall This Week

By Elie Mystal

Orrick logo.JPGOn Friday and over the weekend, we received a lot of information about impending layoffs at Orrick, Herrington & Sutcliffe. The firm has declined to comment for this story, but we believe that significant layoffs will take place at Orrick this week.

On Friday, many people noticed that the Orrick’s chairman, Ralph Baxter, was darting in and out of partners’ offices in New York City. It’s not unusual for a chairman to check in with his partnership. But in this climate, on the very day that Latham laid off 440 people, the chairman’s conspicuous presence in NYC made a lot of people nervous.

Some associates checked the conference room schedule. New York associates found out that there are conference rooms booked for an all partner video conference Monday morning.

At ATL’s request, associates at Orrick’s non-NYC offices checked their conference room schedules as well. We now have reports that conference rooms are booked for Monday in NYC, D.C., and San Francisco for “Ralph Baxter and all.”

But our sources found out something even more disturbing than an all partner video conference on Monday.

Details after the jump.

double red triangle arrows Continue reading “Impending Layoff Watch: Orrick Ax To Fall This Week”