There have been a number of firms that have cut associate salaries. But there have not been many firms that have needed to slash salaries twice this year. Allen Matkins associates appears to be in their own personal corner of sadness.
A tipster reports:
For the second time this year, Allen Matkins has laid off lawyers and cut salaries for those who still have a job. 2 lawyers were laid off in Los Angeles. I am not sure how many in other offices, but I know there were more. Salary cuts were also part of the package. Associates untouched by the last round of salary cuts were not so lucky this time. Cuts ranged between 15% and 30%. … This cut occurred Thursday October 15. Cuts are effective November 1, 2009. Nice holiday gift isn’t it.
Allen Matkins has not responded to our multiple requests for comment. In terms of layoffs, other tipsters have reported a few involuntary attorney departures. 2nd year associates seem to be the hardest hit.
Multiple tipsters are also reporting the salary cut news.
Following along with all of the Allen Matkins cuts is a little bit confusing; let me walk you through it after the jump.
In March, Allen Matkins was one of the first firms to adopt the hybrid tough love package of salary cuts and associate layoffs. The firm reduced its first year salary from $160K to $145K. More senior associates saw their salary cut between 15% and 30%.
In May, we reported that most mid-level associates at Allen Matkins ended up with a 20% salary cut.
Putting all the cuts together makes for one huge salary cut for Allen Matkins associates that are low on hours. One tipster puts it this way:
Associates and paralegals told they will now be receiving only 60% of original salary. If hours are made up they will be paid the 40% at end of fiscal year
A 40% cut could push some associates under $100,000 in salary.
Sorry Allen Matkins employees. I don’t know what to tell you.
Earlier: Nationwide Layoff Watch: Allen Matkins Continues the Layoff & Salary Cuts ‘Super Combo’
Allen Matkins: Salary Cuts Hit Paralegals Too