Blind Item Follow-Up: Denials of Upcoming Layoffs from Dewey, Schulte, and White & Case
On Monday, we tossed out a blind item about future layoffs at a Manhattan law firm, mentioned in the Washington Post as a client of the Five O’Clock Club, an outplacement firm. On Tuesday, with the help of Law Shucks, we narrowed down the list of suspects.
We’re happy to report that we can advance the ball on this. Three firms should be cleared of suspicion:
1. Dewey & LeBoeuf: A spokesperson from D&L stated that it is not the firm in question and has no layoff plans.
2. Schulte Roth & Zabel: A spokesperson from SRZ stated that it is not the firm in question and has not hired a layoff consultant or outplacement consultant.
3. White & Case: A reader pointed out to us that White & Case is listed as a Five O’Clock Club client (PDF). [Update: Looks like the client list has been removed, but we downloaded it; check it out here.]
This caused us to wonder if White & Case might be the firm at issue. But White & Case denies it.
From a firm spokesperson:
We don’t normally comment on rumor or speculation, however, we will tell you that your conclusions are wrong in this case. We remain confident that the changes we announced in November 2008 and March 2009 have positioned us well to allow the Firm to respond to the changing demand in the market for legal services.
So Dewey, Schulte, and White & Case are out. If you’re at one of these firms, breathe a sigh of relief. Your job is safe, at least for the next few months.
Who is the New York law firm with multiple rounds of layoffs in the works? Let’s take a look back at the Law Shucks list of suspects, but subtract out Dewey, Schulte, and White & Case. That leaves:
If you’re at one of these firms and are in a position to know that your firm is definitely not the one with layoffs in the works — we prefer to hear from official sources, like managing partners, hiring partners, or firm spokespersons — please email us.
Readers: Who do you think is the firm planning layoffs in August, October, and November of this year?
Earlier: Blind Item Follow-Up: A New York Firm That Fits The Bill?
Blind Item: Layoffs To Come At ‘A Law Firm in Manhattan’
(97) Comments
Comments
Very interesting. Nice work Lat.
Proskauer Rose? They seem to be hemorrhaging badly.
You forgot Stroock again. Stroock is definitely a candidate.
I bet this outplacement firm is losing a few clients.
I still think its white and case. make sure you refer to this statement when you have their next layoff thread in a few months.
No offense, but this is just getting stupid. You're really not telling us anything with these subsequent posts.
David - you're stirring the pot with a slotted soup spoon. The item from earlier this week was about an outplacement consortium / affiliate group with a pronounced MLM orientation whose business focus is on the admin side - not the lawyer or comparable professional side. You're chasing shadows. Better off to catch up on the first 3d seasons of Mad Men for some fashion tips.
EIGHTH!!!
Fish & Richardson rescinded offers to incoming associates on graduation day.
For any law students interested in IP, remember that F&R is your last option. I could have gone to several other IP shops but chose F&R because it was "the place to be" if you want to do IP. All the incoming associates at the other IP shops still have jobs, however.
Morgan Lewis canceled their summer program. I bet they're the ones.
7 - ATL covers layoffs of admin / support staff too.
- Former paralegal (until I got laid off, as reported on ATL)
I think it's Mayer. I have a friend over there with nothing to do.
Ever thought that you are actually hastening these impending layoffs by forcing the firm in question o spill the beans?
Told you guys it wasn't SRZ.
Maybe its McDermott ... again.
F&R is truly a repulsive firm.
--rising 3L with no interest in IP
PROSKAUER!!
More caption contests please.
does fordham law really exist
13 - I don't think ATL is hastening the layoffs. Did you read the Wash Post article? The firm has already set the wheels in motion by hiring a layoff adviser.
I don't think that MLB is a client of the Five O Clock Club - I am pretty sure they use someone else.
FIRST to say that in this case denial is in fact just a river in Egypt.
My money's still on WhiTTTe & Case.
Nothing about Proskauer's mess yet? Those poor deferred associates...
A firms comment on this article/blog piece and 4 bucks will buy a you a nice latte at Starbucks. A firm's denial means nothing they'll do whatever they need to do including laying off more associates to survive.
Morgan, Lewis and Bullshit. They're next.
Anyone hear rumors about Cravath layoffs after all summer associates leave?
26, i heard there going to stealth a couple people
20 -- By narrowing the field of potential firms, ATL may very well be hastening the layoffs because the firm in question will feel they need to put the speculation to rest. To do so, they could announce the layoffs earlier than they had planned sans ATL.
It's TTThelen.
27, that is well known, I meant non-stealth early/mid September
I call bullshit on Dewey & LeBoeuf. It is unbelievable what complete fucking liars that firm is filled with. They have been conducting layoffs at D&L firm en masse each review period since the merger. I know this for a fact!
Anyone hear rumors about a Justin Timerlake and Jessica Biel break-up after all summer associates leave?
Whoever the client is, they will surely fire the Five O'Clock Club after this unwanted publicity.
Awesome.
Its Kirkland.
32: 162/180
It's Mayer Brown. The head of their NY corporate group recently departed, taking with him what little was left of their NY corporate business.
28 - Or they deny layoffs / cancel planned layoffs (because they've been exposed by ATL).
W&C said similar things after the first round of layoffs in November.
I can confirm that CSM is doing stealth layoffs
It's Mayer Brown. I also have a friend over there with nothing to do. They're scared shitless they'll be next.
It's Theller Ehlen.
I think it's your mom.
Judging by today's events, I'd say it's Proskauer.
Who cares.
43 - What were "today's events"?
This screams Shearman & Sterling.
didn't schulte always claim no layoffs even after people fired for "performance reasons"
32: hilarious.
also, that w&c statement doesn't read like much of a denial to me. my money is still on them.
Cadwalader
Paul Hastings
I vote McDermott.
23 & 43 - information, please?
-2009 SA
Jacoby & Meyers
What happened today at Proskauer? (even not knowing, I agree)
There are also some rumblings at Katten in New York...transactional not lit.
Look at for lay offs coming down the pipe......
"You forgot Stroock again. Stroock is definitely a candidate."
Stroock actually sent out a memo to a number of associates stating that they were being laid off effective "August 2019."
As I reasonably relied on this typo to my detriment by moving my enitire extended family from China to a high rise in Manhattan, I cannot be laid off!!!!
If I was I would have an excellent detimental reliance claim!!!!!!
SRZ is still doing stealth layoffs.
It's K&E
WHERE THE F ARE THE VAULT RANKINGS? I AM A PRESTIGE WHORE AND I NEED TO KNOW IF I AM STILL PRESTIGIOUS!!!!!
Me too, I put my money on W&C.
MLB just fired a bunch of partners, could be them
Comment removed by moderator.
How do we know its not Cahill?
ITS WACHTELL ROSEN KATZ AND LIPTON!!!!!!!!!!!!!
Ummm . . . Having been in the room after the first round of cuts at White & Case where they said the same thing, and then being one of the people cut in the second round, I wouldn't put much stock into their statement. Every single one of my friends still there is positive it will happen again.
You fools. These same firms issued the exact same statements last year. They cannot be believed.
27 - they are, their, and there
27-They're going to adjective me too. I can feel it.
PHJW has all their "transition" agreements ready.
Add another voice saying it's probably White & Case. Denials are totally meaningless -- it's not like they would actually admit it if it were true!
Heard that they moved up self-evaluations to July instead of the prior Oct/Nov. I bet this will be more of a stealth/"performance-based" layoff, using those lame self-evals and low hours as grounds.
Latham preparing to lay off the incoming first years.
There have been no layoffs recently at my office. And we were flooded this summer with SLIP applications from top tier schools, above and beyond what we usually experience.
As it happens, the hectic state around my office lately has put a serious damper on my free time to work on this chess set that I am crafting from scratch. Recently, I purchased a stock of beautiful rosewood and maple, and have, for some time now, been whittling myself a chess set and what I hope to be a striking 21" chess board.
MLB laid off 12 in London today (entire litigation practice in UK). You be the judge.
Can anyoen confirm whether the precious few Thacher Proffitt associates taken to Sonnenschein in Feb 2009 have since been slealthily canned?
Its a given that expelled Associates will have to fend for themselves, retool, sell italian ices, what have you but at least they are on the younger ned of the curve. What of the soon to be expelled partners. What will happen to them?
My hope: That they burn in the fireiest parts of hell.
7 nailed it. Wasn't there an original assumption that the law firm Five O'Clock was representing was only laying off lawyers? From that falacious assumption was born a list of firms that had in the past had two rounds of lay-offs of lawyers? That incorrect list has now been whittled down and folks are speculating on who it could be.
Wait. What if the original assumption that the law firms in question had laid off lawyers is wrong and the law firm in question had a combined layoff or two layoffs of admin only?
friend over at Kirkland (at least NY) said they were doing a big round of layoffs at the end of the month
You can generally view documents that have recently been removed by googling 'cache:URL' so you can do 'cache: http://www.fiveoclockclub.com/corporatehr/Services_Prices/SponsorList.PDF' and get the file converted to an image.
Schulte may not be the firm in question but I bet they're planning layoffs -- they didn't say "No layoffs are planned", they just said "We haven't hired layoff consultants" Big difference.
The shafted Madoff investors probably got a better return than Sonnenschein will on its Thacher Proffitt gamble.
cravath
SRZ has been doing stealth layoffs for a long time, though they'll never admit it. They are low class scumbags that deserve to have their entire client base walk away from them.
GOOGLE DOCS:
http://docs.google.com/gview?a=v&q=cache:5acqXA9aApUJ:www.fiveoclockclub.com/corporatehr/Services_Prices/SponsorList.PDF+five+oclock+club+white+and+case&hl=en&gl=us
The PDF WILL LIVE FOREVER!
Wow! That outplacement firm's not-for-profit clients include Girl Scouts of America and The Robin Hood Foundation.
Times must really be tough.
43, stop being cryptic and give up the dirt.
Body bags were discreetly delivered to Proskauer's NY offices today.
Morgan Lewis makes the most sense.
The MLB fiscal year runs from October 1 through September 30. There has been speculation that MLB would do another round of layoffs after the summers left the firm and the fiscal year drew to a close. Because the article specifically mentions October, it is entirely probable that it is MLB. This would allow MLB management to review the FY09 numbers, determine how far off they were in projections after their last layoff, and adjust accordingly to begin FY10.
The firm has stated that it is getting rid of its London litigation group, it has been doing stealth layoffs of associates and partners throughout the summer, business has fallen off a cliff, and it is currently undergoing an entire overhaul of its compensation system.
The propaganda from management is that they are switching to a "merit" based compensation system, but nobody knows what the hell that means. Details are nonexistent and everyone is fully braced for a salary cut.
Many associates that receive what little work there is and maintain ongoing client relationships have been actively looking for other opportunities. The general expectation is as soon as the new compensation system is announced, a lot of people will be leaving the firm for other firms, government positions, or in-house.
PHJW will just continue their stealthfest.
There are many comments hinting at something going down at Proskauer, yet nobody seems to know what. I'm guessing unfounded rumor or somebody would have had specifics by now. Very strange.
Proskauer may not be the client of the FIive O'Clock Club, but they are a firm in trouble. I 'm guessing the rumors are based in fact, even if Proskauer manages to keep the facts from ATL.
How about DLA?
Rest assured - Schulte WILL do more "performance based" terminations. Interesting how the layed-off lawyers heard the same scripted speech no matter how inapplicable.
Paul Hastings is actually a client of the 3:30 am club. Client services include snuffing out associate's career aspirations with a heavy latex pillow.
If the firm had an ounce of self-respect they would be ashamed.
Body bags at Proskauer ? Details, please.....
My understanding is that F&R only rescinded offers to those who were ranked in the bottom 1/3rd of the summer associate scale which included things like work product and demeanor.
My money's on DLA. There'll be another round in October. What did we expect, after pushing back on the 20% pay cut?
My prior post was removed.Let's see how long this one stays up.
I'm surprised so many people believe what they read in the newspaper. I'm Kate Wendleton, President, The Five O'Clock Club, the outplacement firm they wrote about.
Sorry to ruin the fun of speculating, but -- being the president -- I know that the author was using artistic license to make the article more dramatic.
There IS no law firm we're working with that is planning those kinds of layoffs. What's more, we don’t have a “tally of destruction,” don’t pay monthly bonuses, have a larger office than he described, are not across from a laundry room where people come and go in their pajamas, Kim does not pop Tylenol -- ever -- and it's all meant to add drama to the article.
The technique obviously worked and I am sorry you were misled. We were upset at first, but then realized that this is what sells newspapers. That's show biz.
Warmest Regards,
Kate Wendleton
President
The Five O'Clock Club