Things could be better over at Cahill Gordon. In May, the American Lawyer noted Cahill’s fall from the Am Law 100, the nation’s 100 largest law firms by revenue. Until its recent tumble, Cahill had been on the list for 24 consecutive years.
Back in January, we reported that Cahill Gordon laid off approximately 10 percent of its associates. At the time, we mentioned that first- and second-year associates were spared from the winter cuts.
Well, it appears that the wheel has come around. Multiple independent sources report that Cahill laid off a number of associates last week. Our sources report that junior attorneys were the focus of this round of cuts:
It seems without warning many 2nd years were let go [last Wednesday].
Another tipster reports:
Second years out the door [last week]. I guess the January reprieve was just temporary.
At least second years received some extra pay. The firm did not respond to our request for comment, but we understand that laid-off associates did get a severance package.
And the sacrifice of Cahill second years could preserve the salaries for all of the remaining Cahill associates. More details, plus a reader poll, after the jump.
One tipster suggests that management at Cahill Gordon was trying to decide between layoffs and salary cuts:
Stealth layoffs at Cahill [last Wednesday]. I have heard of several associates who were laid off. The compensation committee met the other day & layoffs are the result.
Our sources did not know the overall number of associates that were laid off, or what other class years were affected by the cuts.
But those that have survived this second round of Cahill cuts are still making NYC market salaries. Would you rather remain on a $160K pay scale and risk getting laid off? Or do you think the firm should have cut everybody’s salary, in order to protect the jobs of second-year attorneys? Take our Star Trek inspired reader poll below.