This Week In Layoffs: 06.22.09
[Ed. note: Above the Law has teamed up with Law Shucks. Law Shucks has done excellent work translating all of the layoff news into user-friendly charts and graphs: the Layoff Tracker.]
Let’s all move to Nebraska! In a week in which unemployment was up in 48 out of 50 states (plus DC), Nebraska’s unemployment dropped by 0.1%, keeping it tied with North Dakota for the lowest in the nation at 4.4% (tie goes to the state with the Championship Subdivision (formerly D-I) football program).
At the other end of the spectrum, the state with the finest football program in the nation has the highest unemployment rate: Michigan at 14.1% (Go Blue!).
Closer to home, New York’s unemployment has hit 9%, the highest rate in more than a decade due to continuing deep cuts in the financial-services industry that spins off so much legal work.
After the jump, we detail the effects that has had on law firms this week.
The biggest news of the relatively slow week was news that even Cravath, of the oh so sterling reputation, has engaged in the vile practice of stealth layoffs. Many were surprised when the firm announced last week that it had “stooped” to deferring incoming associates, so this was quite a shock. Of course, we’ve been saying for a long time now that firms have been trying to get away with it for months now - but the deferrals seem to have been the crack in the dam that brought the information pouring out.
Cravath wasn’t the only top-tier firm in the headlines this week, though. Simpson Thacher laid off approximately 20 staff - leading to some confusion on how to operate elevators and get access to the attorneys’ floors - and Paul Hastings terminated 25 staff, but some may be relocated to the firm’s LA office.
Clifford Chance is no slouch, coming in at #22 on the current Vault prestige rankings, but they’re not likely to maintain that lofty spot much longer. The firm laid off up to 10 litigation associates in New York this week, following the decimation of that practice group in the city in the wake of the core leadership team’s departure for Gibson Dunn. Clifford Chance is also in danger of losing its spot on top of the gross revenue rankings, down 5% and likely bringing the title back to the states for Skadden.
Some lofty rankings Clifford Chance does retain:
- #4 for total number of people laid off (436)
- #3 for total number of lawyers laid off (235)
- #8 for total number of staff laid off (201)
- #1 for rounds of layoffs (12)
Magic Circle peer DLA Piper (which is also ranked pretty highly on many of those lists) had its seventh round of layoffs when it let go 22 people from various Middle East offices.
As always, additional information and the final numbers for the week, month, and year can be found in the rest of this post on Law Shucks.
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Comments
Talk about layoffs, my firm's got 'em.
Could ATL or maybe even Lat clarify what ATL's relationship is with LawShucks? It's a little unclear whether they've teamed up with each other.
Thanks.
Law Shucks = fail.
DLA Piper is not a "Magic Circle peer." The term is not synonymous with "any British firm."
"we've been saying for a long time now that firms have been trying to get away with it for months now"
Proofread, please
How was your weekend?
Illegal alien knocks 14-year-old off bike in hit and run; media silent
http://www.nhregister.com/articles/2009/06/20/blotter/doc4a3d134f5704b886024264.txt
Finest football program in the nation? The rest of the post just lost all credibility!
Dang 6,
great post. Well written, totttaly relevant.
Also, I have never heard of a citizen running away after a hit and run. Oh wait.....
I second 7. Michigan does not have the finest football program in the country. That distinction belongs to U Penn's Nittany Lions under Paterno.
Shocking that heavily-unionized Michigan's unemployment rate is so high. Just shocking.
What about the foreshadowing posts from the weekend that something "big" is happening in NYC today?
Mass round of offers withdrawn for 2009 3L's?
What gives?
What about the foreshadowing posts from the weekend that something "big" is happening in NYC today?
Mass round of offers withdrawn for 2009 3L's?
What gives?
10, wait until the Democrats get rid of the secret ballot when employees decide on whether to form a union. Why do we even have the secret ballot in the first place when you can just sign a card in front of everyone?
Then every state will be like Michigan.
The "Employee Free Choice Act" is the change we can believe in.
13 - You got it. First, we can all get unionized, then we can have socialized health care.
The tax man cometh, and he's coming to kick some ass and take some names.
7 ftw. Michigan will always be losers under DickRod. No one wants to play for that turncoat.
Yeah, What's the "Something Big" that's supposed to happen in NYC today? We need a thrill to wake us all up from our months long, shell-shocked stupor.
Comment removed by moderator.
Nothing big gets announced on Mondays. Fridays after 4 only.
BTW Mafia Wars on Facebook is really fun. And can be free. Good networking, which is very important for people looking for a job, so it is also guilt free!!
"French prez: Burqas not welcome here!"
Oh, snap:
http://www.breitbart.com/article.php?id=D98VP85G1&show_article=1
YOU ARE ALL IDIOTS
Skadden Secure
Michigan? Did they make it to a Bowl game last year?
#5 Fucking NAILED IT!
The more layoffs the better. There are too many fucking lawyers in this country, and they do nothing but screw everything up for the normal people. To hell with them all. Let's all say it at once in unison: "We want more layoffs."
Nebraska and North Dakota both have D-1 football programs. Nebraska is in the Bowl Subdivision (formerly Div-1A) and North Dakota State is in the Championship Subdivision (formerly Div-1AA).
Of course who expects a Michigan fan to know jack sh** about college football.
will anyone be surprised if one of these laid off first years emerges as a biglaw managing partner serial killer? i mean, they could have gone to other firms, or gov jobs if these MORONIC managing partners hadn't overhired because they're terrible managers.
This is bad news for the economy of the Appalachian State region.
Paul Hastings has finally drunk its Fleet and is now crapping out service partners.
Finest football program in the country? Michigan? Do you not watch football?
I would like nothing more than to see Seth Zachary get ousted by a no-confidence vote of the PHJW partnership. 5 years ago, his mantra was that Asia is the future. Now, they have eviscerated those offices.
As things get tight, expect to see a battle royale among the lateral partners recruited to the firm with lofty promises of major $$, fighting over the diminishing pie. There are no cultural ties to bind people to that place. It is an agglomeration of partners who joined for money reasons.
Leaving PH was the best decision I have ever made in my life. Only after leaving did I realize what a bunch of idiotic, horrible business people, god awfull managers, empty souls, alcoholics, liars, and all around miserable people I had been busting my ass for. Did I mention that they lie? Any potential client should do some research on the track records the partners are touting. I couldn't support the lies so I had to leave. Crash and burn you greedy motherfuckers.
29- This downturn is young, and PH added a lot of capacity over the boom. When partners who do nothing but bill 8 hours a day to 'client development' with no business to show for it hang on, associates must go. Partners like that, and the legions of underemployed associates are making up the bulk of the reductions.
PH will lose 50% in '09, you can bank on it. If they don't, they will lose 100% becuase they will be gone.
31: Do you know anything about the problems PH is having with their credit line? We're hearing that the partners are now being asked for personal guarantees. What next?
32 - Not 30, but that is all we know here in LA. The source is a friend of a partner on the management committee.
If only they had networked!