Nationwide Layoff/Salary Cut Watch: Don’t Listen to that Voice Mail from Squire Sanders
Way back in December, long before the cool kids started doing it, Squire Sanders & Dempsey froze associate salaries.
Having already frozen salaries, Squire Sanders is now cutting them outright. Tipsters report that the firm has announced a 10% reduction in associate salaries across the board. The cuts will start in May.
You’ll remember that Squire Sanders was very reluctant to raise salaries in the first place. So it’s not entirely surprising that the firm is showing no hesitation to cut salaries given the opportunity.
But just in case some Squire Sanders associates think about complaining, the firm also fired a number of people.
Additional details after the jump.
Tipster report that Squire Sanders fired around 30 attorneys on Friday. That seems to be the magic number for SSD. The firm fired the same number of people back in November.
But the manner in which all of this information is being communicated to associates has taken a number of our Squire Sanders sources by surprise. Apparently, associates learned of the fate of their colleagues (and their pay cut) over voice mail.
One tipster quipped:
SSD’s greatest fear - appearing on ATL - no printed memo circulated on this one.
Squire Sanders declined to comment to Above the Law about this story.
Having your pay cut over the phone might not be the best form, but it beats the bag out of getting fired.
Good luck to those recently laid off from Squire Sanders.
Earlier: A Mystery Memo from Squire Sanders (Or: The hot new trend of associate pay freezes.)
Skaddenfreude: Squire Sanders Raises — Finally
Nationwide Layoff Watch: 30 Out At Squire Sanders




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second
first?
Didn't know this firm was even still around.
Squire Sanders.....you're on ATL now, and it's actually worse than if you had circulated a memo. It's pretty disgraceful that you would convey this information via voicemail.
Hopefully you're clients don't start giving you the bad news via voicemail, too. They probably won't though, because that would be....UNPROFESSIONAL and DISRESPECTFUL.
No memo? Voice mail only? Get a digital camera and a digital voice recorder, and document it that way. Put that damn phone on speakerphone if you have to.
Layoffs in Bratislava??
For its next round of layoffs, SSD plans to use Post-Its.
Did this affect any Hofstra or Hofstra-Texas (read SMU) grads?
Voicemail? What'd they do call everyone's office phone at 3am? What about the poor bastard that picked up the phone? Awkwaaaard.......
Sounds like a s*%#show over there and that VM can only be crazy talk.
9 - They probably did one of those broadcast voice mail messages where you send the voicemail to people without ringing their phones. I used to hate that feature.
The proceeds of my promissory estoppel equitysuit will substitute for my lost salary.
SSD 4th year.
Squire Sanders never let me pound my secretary in the ass like they now let me do at Skadden.
how long is the voicemail? is it them basically reading a memo into a broadcast message?
horrible.
JONES DAY REMAINS.
well clearly the partners at Squire Sanders read the comments. This is PE's hybrid tough love package.
Why doesn't Squire Sanders get bashed on ATL like Latham?
Anybody here have evidence of pounding Squire Sanders secretaries in the ass?
SWINE FLU: THE CHANGE WE CAN ALL BELIEVE IN. THANKS OBLAHMUH.
are SS and Seyfarth Shaw still contemplating a merger? The salary cut puts SS attorneys on a similar salary schedule as Seyfarth, which starts 1st years at 145k.
Seyfarth Sanders remains anal about the ass pounding proclivities of its staff.
Although not a peer firm, S&S is on track to ensuring its financial survival by adopting my hybrid tough love package. To any member of a management committee at any peer or non-peer firm, remember, layoffs instill fear and salary cuts engender gratitute and loyalty among the remaining rank and file employee. Furthermore, utilize foreign based attorneys as an alternate outsourcing plan and then you will see your associates work harder to save their pathetic jobs. Rolling stealth layoffs are continuing at peer firms and I am pleased none of our terminated associates have resorted to lambasting us in public.
I am saddened to announce that I will be on hiatus after today and will be returning on May 1 after making a personal appearance on 53rd and Third before the malcontents and misanthropes that will be protesting the necessary layoffs and deferrals. I challenge cowardly associates to show up instead of hiring actors to demonstrate on their collective behalf. Grow a spine and show up. Remember, I will have camera crews ready to immortalize your faces at the demonstration.
Agree with #5. Once ATL starts posting some mp3s of voicemails......
Hey, Partner Emeritus, do you want to meet me in the lobby and have a bit of lunch sex?
I understand that the economy is forcing (or at least providing cover for) many of these moves freezing or cutting associate compensation. It totally makes sense that law firms facing uncertain futures would want to circle the wagons.
However, bloated associate salaries are not the problem in and of themselves. The REAL problem is that firms simply don't have enough work to keep these associates billing enough hours to pay for those salaries. To that extent, cutting salaries is merely an interim move - there's no reason for law firms to keep a higher number of associates around at a $145K scale if they're all billing the same 1500 hours they were billing at a $160K scale.
Therefore, the fight shouldn't be about a 10% pay cut, it should be about what firms are doing to bring in more work. If I were an associate at one of the firms that has frozen or cut salaries, my first question would be whether those moves are being accompanied by a concomitant, across the board freeze or reduction in billing rates. If not, how is the firm using what they're saving on my salary to encourage business growth, other than the same stuff they were doing before the recession? In other words, I'm willing to take the financial hit - but only in the name of making things better for everyone, not in the name of keeping profits per partner stable.
Similarly, if I were interviewing right now, I'd also be interested in what firms were doing with regard to their billing rates. It's a buyer's market for labor right now, obviously, but it won't always be, and firms are still concerned with their reputations. Letting them know that law students and laterals are interested in how they're allocating the burden these days might help them see that what they do now will have repercussions down the line.
They still pay more than any other firm in my city (Cincinnati).
Termination of employees by voicemail or other electronic means is prohibited in NY and NJ, even for at-will employees. Look it up.
NY to 110k!!!!!!!!!!!!!
If they are trying to avoid leaks with details in a memo or vmail, they should just empty the offices and hope the fired associate gets the point and leaves.
Just like the last post about SSD, I am left wanting more facts.
Do we know what offices the layoff effects? Is the pay cut the same as the pay freeze, only for U.S. domestic offices?
and SS will still have 0 trouble filling next years SA class. No doubt about it
Ever get that "I've just been pounded in the ass" sensation?
SS insider
22: Let me be the first to wish Partner Emeritus the best on the completion of his "medical procedure" tomorrow. He shall be free at last.
Prudent moves by a firm that understands the downward trend of the Dow.
31 - Sure they will, but they jumped down on a lot of people's lists, and now will only get people who couldn't manage to land a job at a firm paying market; i.e., the dregs
Sorry 25, but you have it backwards (I think you have been Obama-tized). Law firms do not cut salaries to create more business; they do it to maintain profitability. The billing rates should stay the same so that profitabiity increases (although in the current economy firms have to be more sensitive to reducing fees to obtain new clients/maintian existing ones). Also, unless you are interviewing as a lateral partner, asking about billing rates in an interview would be a serious mistake - it's just none of your business.
Which offices let people go? Any practice areas in particular?
PE's medical procedure = being gang pummeled in the ass
I don't think the firm fired people via voicemail, just told those remaining of what was going on through that means.
PE - Generally, you rock but S&S is Shearman & Sterling not Squire Sanders.
39, thank you.
27, you are an idiot. I bet you work for a great firm but lack any common sense and everyone laughs at you behind your back.
So did they not reduce salaries by voicemail then either?
This comment is addressed to post no. 40.
10 years ago, you were correct. In my opinion, Shearman and Squire are non-peer firms, thus, they are lumped in the same category and do not merit any distinction.
Promissory estoppel, fraud in the inducement, negligent misrepresentation, breach of implied covenant of good faith and fair dealing---choose your weapon, depending on your facts and jurisdiction (NJ has some good case law)
42 -- Sounds like they reduced current lawyer salaries AND spread news of other attorneys' layoffs via VM.
I LOVE ACID!!!
PE,
Are you still bringing your pal Don Moffat on May 1?
Some intrepid Squire Sanders associate should copy and post the voice mail - it could become as legendary as the errant winston lawyer's message for the latham attorney he labelled a "scribe monkey" a couple of years back.
48,
I think it was "monkey scribe."
Squire Sanders Says Salaries Slipping
Do you think other firms in Ohio will also cut salaries? I know Thompson Hine has already done so, but will Baker or Jones Day follow suit?
There was supposed to be a mandatory meeting at 1:45 pacific time for the SF and Palo Alto offices. Any word on what was said?
The part about voice mail was a myth. Lawyers were spoken to.
Talk about a 3rd tier firm.
Cleveland sucks!
SSD is not just in Cleveland anymore. And, at times, Cleveland rocks.
I work there. I would have posted from work, but I think Elie blocked me for making a poorly-chosen remark at a particularly stressful time in the day.
Anyway - we heard it first from ATL. No VMs that anyone I know of received. But had an all associate meeting this afternoon. Layoffs all over the firm, totaling "about 30". 10% salary cut, which, of course, they hope to make up to us around bonus time.
Naturally. What else should we expect?
Considering I have been there a few years and have yet to meet anyone who has ever gotten a bonus, let's just say that none of us are hanging our hats on that one.
Folks asked about going to a tiered salary structure a la Hogan - thus low billers would have a salary cut, but those of us who continue to bust our asses and make our hours would not take a hit. However, apparently the management believes in a philosophy of "One Firm" and therefore everyone must share equally in the pain.
Everyone except the partners. Although it was mentioned that the partners had a 7% decrease in pay last year. However, this year the firm is meeting its financial targets. So, why the need for the cuts now?
That was not explained.
Nothing was given in writing. There was mention of moving away from lockstep in the future.
Let's see, what else? Well, since 2007 I have gained two more years of experience, am billing more, got excellent reviews . . . and am making less today than I did then.
I am not bitter though. Just very, very satisfied in the soundness of my determination that this place is awful. And I am absolutely certain that I am not alone in this view.
Whatever. Fuck it.
Ohio law firms suck.
Jones Day: A used-to-be. Not even an Ohio firm anymore.
Squire: This thread says it all.
Calfee: Crap firm.
B&H: Yeah you represent the Indians...what else?
Thompson Hine: Whipping boy here.
Vorys: Won't even admit to their layoffs, crap firm.
Bricker & Eckler: Admits to their layoffs, crap firm.
Porter Wright:: Does anyone care? Nice people FWIW.
Dinsmore: Does Cincinnati even have a legal environment where billing more than 1,200 is possible?
Taft: See above.
Frost: See above.
Year in and year out, SSD is at the rear end of the AmLaw 100. Generally, this means lower margins on most of the work it still has. The best way to increase profits on this kind of a revenue stream is to cut costs. I don't think the firm has much of a choice in the matter because, like most firms, the next couple of years for SSD are going to be about survival. Forget about thriving, hits to reputation, recruiting, etc. At this point in time, it's all about survival.
56 covered it pretty well. I hate losing the 10% but at least I still have a job. My sympathy goes out to all those who don't.
@56: SSD is off plan for the first quarter. Corporate and real estate is very slow, bringing down overall results. That's where the layoffs are.
It seems that SSD is still doing better than peer firms and is poised to do well when the economy turns around.
@60. SSD continually says it's doing better than peer firms but it's always the one making the most cuts.
Stealth layoffs are still ongoing at Thompson Hine.
Thompson Hine cut salaries first, did layoffs first, and has cut deeper. Hooray, we're still #1 at Thompson Hine! Even though we're going #2 all over the associates and staff!
Plus, FWIW, Thompson Hine seems to have a greater number of pompous partners that aren't rainmakers, act like God's gift to law, and are generally unpleasant assholes than most other firms.
Sure, you can take a paycut or get laid off at any firm in Ohio, but to get the absolute best "slow career death" experience, I have to recommend being an attorney for Thompson Hine. That they treat you like shit and act like assholes while they do it is that extra little touch that sets Thompson Hine apart from the Ohio competition.
I wonder if clients know what a Thompson Hine partner's favorite question to associates is - "Now, are you ABSOLUTELY SURE you billed every last bit of your time on this project?"
Fantastic. Squire Sanders associates, you just got fed a turd sandwich, but at least you don't work at Thompson Hine.
Stealth layoffs are still ongoing at Thompson Hine.
Thompson Hine cut salaries first, did layoffs first, and has cut deeper. Hooray, we're still #1 at Thompson Hine! Even though we're going #2 all over the associates and staff!
Plus, FWIW, Thompson Hine seems to have a greater number of pompous partners that aren't rainmakers, act like God's gift to law, and are generally unpleasant assholes than most other firms.
Sure, you can take a paycut or get laid off at any firm in Ohio, but to get the absolute best "slow career death" experience, I have to recommend being an attorney for Thompson Hine. That they treat you like shit and act like assholes while they do it is that extra little touch that sets Thompson Hine apart from the Ohio competition.
I wonder if clients know what a Thompson Hine partner's favorite question to associates is - "Now, are you ABSOLUTELY SURE you billed every last bit of your time on this project?"
Fantastic. Squire Sanders associates, you just got fed a turd sandwich, but at least you don't work at Thompson Hine.
58,
I think you are confusing AmLaw with Vault. Squiire Sander is usually in the middle of the AmLaw 100 charts.
56, 59, and 60
Thank you for your insights. Do you know if the layoffs/pay cut are for the international offices as well?
Squire Sanders is probably the biggest turd bucket of all the turd bucket Ohio firms. Worst case scenario for an associate is to sign on to a firm that thinks it is big law, but is really just one step above TV advertising personal injury megashop.
Face it, SS&D will f*ck you every time, in the clueless hope that they will be in the big time. And their clients sooner or later find out that the work they get out of this janitorial shop should stay in the toilet.
BTW Porter Wright is a bunch of ass clowns. Most of those shitheads either didn't pass the bar first time or should be disbarred now. And we're talking the OHIO bar.
Ohio is where the NY sewers empty
66 - You sound credible. Smart people talk like that. No, really. They do.
56 - That sounds brutal. It'll be interesting to see if their profits per partner are down 10% or not. They seem to be operating opposite of conventional wisdom. Generally, employees have a constant salary and don't lose (unless they lose their job) during bad times or win (other than relatively small bonuses) during good times. It is usual the business owners (in this case partners) who lose during bad times and win (huge) during good times. What is odd, at least in my city, is that SSD has a serious reputation for screwing its associates with respect to bonuses. In other words, it appears they are making sure to pass on bad times to their associates (in the form of a 10% pay cut) and yet hoarding monies from the previous 4 years of record profits to themselves. I guess when the economy turns around you and all your colleagues will be getting the hell out. I sure would.
Anyone know which office is getting the lay off?
Has this effected the litigation dept? How about Staff? I want to know if Staff also got laid off.
Seriously though, the attorney need to be ass-kisser (ie babysitting the partner's kid for them, painting their house, etc) to get anywhere. sad, but true. A whole lot of the associates there are jerks who went to Hasting and thing they are "all that"
heard that Morgan Lewis did the same thing last week, laid off via voicemail....
@69. No litigators have been asked to leave. No word about staff.
will this bring down salaries at other ohio firms like jones and baker?
jones and baker aren't lock-step, so it probably won't hurt upper level attorneys. baker may use it as an excuse to lower entry level salaries.
SECOND-RATE FIRM CUTS ASSOCIATE SALARIES, ADMITS INFERIORITY, ACCEPTS FUTURE INABILITY TO RECRUIT TOP TALENT
Make that 15% cuts... not 10%. This article is inaccurate. It should read, SSD cuts salaries 15%+ this year or, alternatively, SSD cuts associate salaries by an additional 10%. Keep in mind they froze pay this year, depriving associates of their standard 5 - 8% raise. They are now justifying this with partners taking a 4-7% decrease in salary. No wonder SSD is a second rate firm. How the hell are you going to recruit when you give your associates a haircut that is twice as much as the partners? Very odd way to run a business. I assume you also gave your associates huge bonuses in 2005 and 2006 when your partners were recording record years? Yeah, right. At SSD, it sounds like the associates are only welcome to share in the shitty times. Sweet. I am going to lateral to SSD.
When my friend at SSD tells me her stories, it makes me glad I chose a real law firm.
Huh? I've been watching Vorys closely, and I don't think they've been laying off.
Vorys has not laid off any attorneys, but has made some staff reductions. I don't think you'll see layoffs of associates but wouldn't be surprised to see non-performers being told to move on.