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Nationwide Layoff Watch: The Baker Botts Dozen

Baker Botts logo.JPGYesterday, we reported that Baker Botts no offered around 50% of its summer associate class. But while Baker Botts summers were learning whether they had a future with the firm, some Baker Botts associates were told to move out of the way. The Texas Lawyer reports:

This week, Baker Botts laid off lawyers for economic reasons, says firm spokesman Mike Cinelli, although the Houston-based firm will not disclose numbers or further details. The layoffs, Cinelli says, are an attempt by firm management to have “supply meet demand.” The layoffs are the result of market conditions and the lack of attrition this year, Cinelli says. “It was a difficult decision,” Cinelli says about the layoffs.

Above the Law has learned that 12 associates were let go from the Baker Botts Houston office. There are reports of additional casualties firm wide, but as you know Baker Botts doesn’t want you to know how many of its people it is putting out on the street.

For the 12 in Houston, one tipster had this to say:

Associates at Baker Botts have been surprised about some of the layoffs in the Houston office. Several high hours, good work product people are gone along with some who are not big surprises.

Should summers and incoming Baker Botts associates be concerned? Details after the jump.

This is the second round of layoffs to happen at Baker Botts this year. Coupled with yesterday’s no offer news, should incoming first year associates be concerned? According to Texas Lawyer, the new hires have absolutely nothing to worry about:

He stresses that recent law school graduates who were promised associate positions at Baker Botts starting in November will still be hired. “We made that commitment and we felt we had to honor it,” Cinelli says.

Out with the old, in with the new?

To recap: current associates are getting laid off, summer associates are getting no offered, does anybody know how OCI is going at Baker Botts?

More layoffs at Baker Botts [Texas Lawyer]

Earlier: No Offer Watch: The Baker Botts Bread Isn’t Rising
Nationwide Layoff Watch: Texas is Starting to Look Like It’s Part of America After All

Comments

1 Posted by Dubya | Permalink Thursday, August 27, 2009 12:18 PM


How you like me now?

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2 Posted by guest | Permalink Thursday, August 27, 2009 12:21 PM

Supply meeting demand?

How about partners supplying the work associates demand to meet their hours?

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3 Posted by guest | Permalink Thursday, August 27, 2009 12:22 PM

1, can you please explain at what time the current President will be responsible for the current economy? Thanks.

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4 Posted by guest | Permalink Thursday, August 27, 2009 12:22 PM

I know someone who already has an offer from the Dallas office. He's HYS, of course.

5 Posted by Paul Bearer | Permalink Thursday, August 27, 2009 12:23 PM

Since the summer associates have left, it is time to resume giving associates their severance.

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6 Posted by guest | Permalink Thursday, August 27, 2009 12:24 PM

Yep, BB will take the incoming first year associates, just long enough to say hello and then goodbye. Time for new law grads to find another occupation, like yard maintenance. I hear most of the Mexicans have gone home, which means more jobs for Anglos mowing grass.

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7 Posted by guest | Permalink Thursday, August 27, 2009 12:26 PM

did they latham the first years?

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8 Posted by guest | Permalink Thursday, August 27, 2009 12:30 PM

Baker BoTTTTTTs!

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9 Posted by guest | Permalink Thursday, August 27, 2009 12:30 PM

"anybody know how OCI is going at Baker Botts? "

Im sure its going great for them -- 2Ls and 3Ls will/should take just about anything they can get right now.

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10 Posted by guest | Permalink Thursday, August 27, 2009 12:31 PM

Any word/confirmation on the distribution of layoffs in various sections?

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11 Posted by guest | Permalink Thursday, August 27, 2009 12:32 PM

Turns out Texas is not quite as insulated as many of the commentators would have us believe.

12 Posted by Your Crushing Debt | Permalink Thursday, August 27, 2009 12:33 PM

What is this "layoff" concept you speak of? On second thought, I don't really care.

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13 Posted by guest | Permalink Thursday, August 27, 2009 12:34 PM

Latham laid off 211% of its NY associates.

Latham laid off 342 first year associates four minutes after they started.

Latham laid off every first year associate that didn't pass the bar except for the second cousin of a Hong Kong Of Counsel.

Latham ruined by life and my career by forcing me to complain on this blog all day instead of looking for a job.

-(Never Been Laid)-Off Latham Associate

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14 Posted by guest | Permalink Thursday, August 27, 2009 12:36 PM

I've heard that Dallas expects to do their layoffs tomorrow. No idea yet how many are affected.

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15 Posted by guest | Permalink Thursday, August 27, 2009 12:38 PM

So law firms are now only hiring new people that show promise (instead of everyone that just looks good on paper) and are letting go the worst/least needed current workers.

Hello Law! The rest of the business world welcomes you!

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16 Posted by guest | Permalink Thursday, August 27, 2009 12:39 PM

to date latham is the only former v10, current v20 that has lathamed off over half a first year class. they did this only four months after these people started, with 0 days notice. they also did it the day after the February bar, ensuring that the NYers, who understandably would need to take a second bar to get a job, would have the largest resume gap possible. in short, latham management is either grossly incompetent, or they don't give a shit about their associates.

baker botts lathamed the NY summers, but we always knew baker botts was a TTT.

in short, Latham and Baker Botts are shitholes.

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17 Posted by guest | Permalink Thursday, August 27, 2009 12:42 PM

a little late... but the associate manifesto:

We are the drone, those unhappy souls whose toils in the machinery of justice get noticed only when more of our blood is needed to grease the gears.

The traditions of the legal profession are unknown to us because we were not born when they were established and we were not taught them in our law schools, electing instead, to take Law and Literature so we could catch up on our afternoon naps.

In this time of crisis we cower beneath our desks and avoid human contact for fear of catching the H1-P1 Associate Layoff Virus.

We fear to question, and have no power to change anything, and we use technology to assist the technologically illiterate partners from whom we often catch H1-P1.

We are innovators, pathfinders, and Mavericks only during our one hour of allotted sleep time each evening.

We are the Drone - Resistance is Futile

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18 Posted by guest | Permalink Thursday, August 27, 2009 12:43 PM

15

LOL. that Latham partner's son who failed an exam 90% of first of his peers managed to pass sure outshined his LaTTTham classmates.

19 Posted by Partner Emeritus | Permalink Thursday, August 27, 2009 12:44 PM

Although not a peer firm, BB gets a hearty acknowledgment from yours truly for executing part two of my hybrid tough love package. Most may argue that terminating associates during this dour economy lowers morale at the firm. I say nonsense. There is nothing more demoralizing than being unemployed. Thus, firing associates from time to time will make the remaining staff work harder and more efficiently in order to stave off future outplacement. You can thank me when your existing staff begin to appreciate their jobs more than ever as a result of seeing their colleagues being shown the door.

20 Posted by Stan Emeritus | Permalink Thursday, August 27, 2009 12:48 PM

On the other hand, I've heard rumors that say that the associate of today isn't able to force itself to work harder and more efficiently, even under threat of outplacement. They're too busy feeling sorry for themselves after receiving a temporary long term negative increase in pay. Sissies.

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21 Posted by guest | Permalink Thursday, August 27, 2009 12:50 PM

I <3 PEmom.... she's right: she should have taken a coat hanger to PE's yet-to-be-developed body.

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22 Posted by guest | Permalink Thursday, August 27, 2009 12:50 PM

Baker survives.

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23 Posted by guest | Permalink Thursday, August 27, 2009 12:50 PM

PE = Lat

Here's why:

(1) No one else has that much time to post on every article of a blog, unless he's jobless

(2) PE has a decent amount of legal knowledge and writes pretty well

(3) Lat wants as many comments as possible - and PE haters generate like at least 20% of the comments

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24 Posted by guest | Permalink Thursday, August 27, 2009 12:51 PM

18 - of course great connections (Daddy included) are part of the overall package and will often pull you out of the fire. Doesn't seem fair? Wow. I say again, this time louder, welcome to the business world. - 15

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25 Posted by guest | Permalink Thursday, August 27, 2009 12:52 PM

I love the fiction that "hours" are under an associate's control. To a minor extent they are, to a major extent they are not. Find yourself attached to a sinking partner, client or practice area, and there's this bizarre notion that somehow your low hours are somehow
"your fault". Efforts to pick up hours outside your feeder is often viewed with suspicion by your boss, and downright hostility by affected peers.

The law firm model is utterly broken, from top to bottom.

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26 Posted by guest | Permalink Thursday, August 27, 2009 12:53 PM

24

your counterargument is retarded. if you have a job you should promptly be laid off. 90% of the lathamed first years most likely have better credentials than you.

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27 Posted by guest | Permalink Thursday, August 27, 2009 12:57 PM

16

we get it. Latham is managed by a bunch of incompetent sadists. they're they're already tumbling through the rankings. we don't need you to remind us on here.

28 Posted by Michael Ray Richardson | Permalink Thursday, August 27, 2009 1:03 PM

The ship be sinking...

29 Posted by EllieWeasel | Permalink Thursday, August 27, 2009 1:06 PM

Hi, guys! Slept late today. Gotta catch up on the news now.

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30 Posted by guest | Permalink Thursday, August 27, 2009 1:09 PM

i agree with 23

and oh, 21 FTW!

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31 Posted by guest | Permalink Thursday, August 27, 2009 1:14 PM

Where's that hot breadline chick, St. Thomas? I want to read, then trash on, her column!

32 Posted by Partner Emeritus | Permalink Thursday, August 27, 2009 1:15 PM

I am in a generous mood today so I will offer some wisdom that your career services office will not care to share with you. If you received an offer from your summer stint and you feel the firm will defer or terminate you within months of employment, reject the offer. You have a better chance of obtaining employment later on by telling other firms that you were the one that rejected the firm and not the other way around. Let's face it, if you received a no-offer this summer, you are damaged goods. No peer firm will hire someone else's rejects. On the other hand, if you were the one that rejected the offer, you have a redeeming quality in your favor. That is all.

33 Posted by BHO | Permalink Thursday, August 27, 2009 1:21 PM

I lied, and even jobs in Texas died.

I'm Barack Obama?

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34 Posted by guest | Permalink Thursday, August 27, 2009 1:33 PM

To me, PE is like Bill O'Reilly. I don't really like him, but he makes interesting points.

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35 Posted by guest | Permalink Thursday, August 27, 2009 1:38 PM

I should probably know the answer to this, but where has the poster gone who always asks if a law school is accedited?

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36 Posted by guest | Permalink Thursday, August 27, 2009 1:43 PM

Stupidest thing PE has ever written at 32.

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37 Posted by guest | Permalink Thursday, August 27, 2009 1:46 PM

Why isn't ATL covering the firm which have not extended offers to the c/o 2010 yet e.g. Baker McKenzie?!?!? Is this not newsworthy?

38 Posted by Partner Emerimom | Permalink Thursday, August 27, 2009 1:48 PM

Life moves pretty fast. If you don't stop and look around once in a while for the condom in your night table drawer, you could end up with a son like PE.

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39 Posted by guest | Permalink Thursday, August 27, 2009 1:51 PM

Did James Baker get laid off?

http://www.abovethelaw.com/2008/07/racism_and_sexism_baker_botts.php

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40 Posted by guest | Permalink Thursday, August 27, 2009 1:51 PM

The only reason BB layoffs make this blog is because BB (and its Texas peer firms) are so damn secretive about it. BB layoffs have been slight compared to the drastic layoffs taken in NY by NY firms. Texas has weathered the economic storm better than most, but it is by no means insulated from the economic realities at hand. 12 layoffs at an 800 attorney firm is not big news - its not news at all.

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41 Posted by guest | Permalink Thursday, August 27, 2009 1:56 PM

This firm should be ashamed of itself. How can it layoff current associates because there is not enough work and then turn around and give ANY summer associate an offer. How about you tell the associates who have already worked for you, who have actually billed hours and have actually done real work (unlike any summer associate has) that they are going to have to take a leave of absence, unpaid of course, and bring them back on when the work does pick up. These firms are ridiculous, screw law students and your "reputation" in their minds, how about taking care of the associate who has already gone into repayment of their loans or has a family to take care of.

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42 Posted by guest | Permalink Thursday, August 27, 2009 2:01 PM

BB's DC office, and possibly all of their non-Texas offices, are not doing callbacks for a couple of weeks. They said they were planning to do all of their OCIs before they make decisions.

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43 Posted by guest | Permalink Thursday, August 27, 2009 2:02 PM

I agree that 12 layoffs is not that much in a firm the size of BB.

HOWEVER, it appears that there may have been more layoffs--of various kinds--over the last nine months.

"In January, Baker Botts had 825 lawyers firmwide, 554 of those in Texas. In May, Baker Botts had 766 lawyers firmwide, 505 of those in Texas."

http://texaslawyer.typepad.com/texas_lawyer_blog/2009/08/more-layoffs-at-baker-botts.html

So what happened to the ~60 lawyers, ~50 of those in Texas, who disappeared between January and May? Laying off almost 10% of the lawyers in Texas, BB's "homeland," is a fairly big deal.

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44 Posted by guest | Permalink Thursday, August 27, 2009 2:05 PM

I love you, 38.

Keep the posts coming.

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45 Posted by guest | Permalink Thursday, August 27, 2009 2:10 PM

BB was one of my worst interviews during OCIP last year. The two douches assigned to cover the West coast (one was from Houston, one from Dallas) were rude and completely awkward. Awful. I'm originally from Texas, so I can be patient with Texans, but these guys were intolerable.

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46 Posted by guest | Permalink Thursday, August 27, 2009 2:13 PM

44 = 38

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47 Posted by guest | Permalink Thursday, August 27, 2009 2:13 PM

Comment removed by moderator.

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48 Posted by guest | Permalink Thursday, August 27, 2009 2:14 PM

When are the Paul Hastings layoffs taking place?

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49 Posted by guest | Permalink Thursday, August 27, 2009 2:20 PM

48 - between the first and second trimesters.

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50 Posted by guest | Permalink Thursday, August 27, 2009 2:29 PM

41 - your argument assumes that lawyers, unlike law students, have debt and families.

Additionally, previous work may prove incompetence, while a summer associate, with no work, has a shot at being a decent attorney.

Not that those who were laid off were not good attorneys - it's simply that new blood may be what the firm wants.

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51 Posted by guest | Permalink Thursday, August 27, 2009 2:43 PM

At least BB will admit to needing economic layoffs, unlike some of the other firms in Texas (I'm looking at you, V&E). And if BB is anything like my firm, I'm guessing that they still want to bring younger associates on because you need associates to do the grunt work at first and second year rates. Partners who have no work can unfortunately take away midlevel and senior work for themselves, and get away with billing the client for it, but they can't get away with billing clients for first and second year work at partner rates. If you have a lot of deadweight partners (and I'm not saying BB does because I don't know), you end up with a situation where midlevels and senior associates are screwed, because the partner hoards that work.

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52 Posted by guest | Permalink Thursday, August 27, 2009 2:44 PM

41: why should BB "take care of" an associate who doesn't do good work?

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53 Posted by guest | Permalink Thursday, August 27, 2009 3:01 PM

WhAT ABOUT VE HOUSTON? Why ATL not report on the stealth layoffs and no offers at VE HOUSTON? Why the hate for BB?

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54 Posted by guest | Permalink Thursday, August 27, 2009 3:17 PM

THIS WOULD NEVER HAPPEN IN TEXAS! You New Yorkers should have moved to Houston--Lexis, 3500 sq ft wife.

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55 Posted by guest | Permalink Thursday, August 27, 2009 3:54 PM

Any word on Haynes and Boone offer rates in Texas?

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56 Posted by guest | Permalink Thursday, August 27, 2009 4:34 PM

53: wah, wah, wah. The world isn't fair.

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57 Posted by guest | Permalink Thursday, August 27, 2009 5:16 PM

55, I don't think they've been made yet.

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58 Posted by guest | Permalink Thursday, August 27, 2009 6:04 PM

I heard that some Dallas associates were let go as well. I do not know how many.

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59 Posted by guest | Permalink Thursday, August 27, 2009 6:12 PM

They fired about a dozen Dallas lawyers too. And this isn't the first time. BB is just sneaky about it.

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60 Posted by guest | Permalink Thursday, August 27, 2009 6:19 PM

VE IN HOUSTON? WILL ATL EVAR REPORT ON THAT FESTERING TTT?

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61 Posted by guest | Permalink Thursday, August 27, 2009 6:33 PM

58/59 Do you know if they were they let go today? I heard Dallas layoffs were scheduled for Friday?

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62 Posted by guest | Permalink Thursday, August 27, 2009 6:39 PM

Baker Botts cancelled OCI at the last minute at my law school. Now I've heard that at least one office has called students attempting to set up screening interviews over the phone.

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63 Posted by guest | Permalink Thursday, August 27, 2009 6:39 PM

Baker Botts cancelled OCI at the last minute at my law school. Now I've heard that at least one office has called students attempting to set up screening interviews over the phone.

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64 Posted by guest | Permalink Thursday, August 27, 2009 6:40 PM

Baker Botts cancelled OCI at the last minute at my law school. Now I've heard that at least one office has called students attempting to set up screening interviews over the phone.

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65 Posted by guest | Permalink Thursday, August 27, 2009 7:00 PM

Anyone heard anything about canceled OCI participation and possible screening interviews over the phone? Anyone?

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66 Posted by guest | Permalink Thursday, August 27, 2009 7:07 PM

60, ever thought that V&E Houston's offer rate wasn't as low as reported and maybe that is why there is no story. I can tell you for a fact that they gave out more than 50 offers. This crap that they gave out 30 or something is just made up.

V&E other offices weren't bad either. Admittedly they were not as high as in the past but they definitely were well above the 50% many are claiming. New York was even 100%. How is that TTT?

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67 Posted by guest | Permalink Thursday, August 27, 2009 7:16 PM

V&E will be referred to a TTT again when they start laying off a shitload of people because they offered too many summers.

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68 Posted by guest | Permalink Thursday, August 27, 2009 9:29 PM

61 - yes, 11 dallas lawyers were let go today. Some were first years.

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69 Posted by guest | Permalink Thursday, August 27, 2009 9:41 PM

Regardless of whether it's termed a lay off, three of six associates being terminated in BB DC are female; three of six are minorities; only two out of six are white males; none are (explicitly) attributed to performance. At least 2 of 12 associates terminated in Houston were minorities. Disproportionate impact?

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70 Posted by guest | Permalink Thursday, August 27, 2009 10:02 PM

Disproportionate impact? No, not really.

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71 Posted by guest | Permalink Friday, August 28, 2009 12:00 AM

BB in its entirety is beyond predominantly white anyway! BB DC office only has 4 black Associates and 3 black Partners (that's out of 57 Associates, 46 Partners, 9 Special Counsel, 2 Of Counsel and 1 Senior Counsel...that I can count from BB lawyers list on-line). I would say there is definitely a disproportionate impact!

69 - can you clarify "minorities"?

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72 Posted by guest | Permalink Friday, August 28, 2009 12:19 AM

Total layoffs at BB this week in all offices will equal about 45-50 associates. Layoffs are effective as of Friday 8/28. The pain was spread fairly equally across all departments. Most layoffs were of mid-level and senior level associates with only a smattering of 1st and 2nd years.

73 Posted by Roger Sterling | Permalink Friday, August 28, 2009 12:21 AM

To the Baker Botts associates.... It wasn't easy. I'm sure we'll regret it.

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74 Posted by guest | Permalink Friday, August 28, 2009 1:43 AM

You should do a story about the Summer Associate from BB who puked out a partner's window on the drive back to San Francisco after a cocktail party. That was awesome.

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75 Posted by guest | Permalink Friday, August 28, 2009 4:18 AM

If "high hour, good work product people" are being let go, and it's mostly midlevel and senior associates, it sounds like forced attrition is in fact that cause (rather than deeper financial issues).

But, regarding incoming first years: "We made that commitment and we felt we had to honor it." sounds a bit more dire. It could mean these new folks have about six months to earn a paycheck before they're let go as well. Or it could mean that BB had a choice between hacking off some midlevels who hadn't show partnership material or jettisoning the entire class of 2009, and made what was probably the more prudent choice.

Good luck to all, either way.

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76 Posted by guest | Permalink Friday, August 28, 2009 12:15 PM

42 - Nope

-2L w/ BB callback

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77 Posted by guest | Permalink Friday, August 28, 2009 8:54 PM

76 - I would not take that callback.

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78 Posted by guest | Permalink Friday, August 28, 2009 9:58 PM

It is really a shame. A lot of good lawyers and good people are now looking for work.

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79 Posted by guest | Permalink Wednesday, September 9, 2009 7:54 PM

Having BB on your resume is more of a detriment than an asset. They're better off not working at a second-rate firm. I recd an email from a partner telling people in his department to contact their representative and tell him/her to vote against Obama's health plan. I guess that's how they do that in Texas. As my colleague said, "I feel like I'm working for the Devil."

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