Layoffs, No Offers, Start Dates, Summer Associates

Further Deferrals at Winston & Strawn(Plus other goings-on at the firm.)

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The signals seem mixed in terms of whether the legal profession is on the road to recovery. On the one hand, the pace of layoffs is certainly slowing. On the other hand, firms are taking other steps to keep headcount (and expenses) down. They are not yet in a mode where they need more hands on deck to handle all the work.
One of the popular approaches is deferral extension, i.e., pushing start dates for incoming associates back yet again. A number of firms have gone down this path. To view our prior coverage, click here and scroll down.
The latest firm to take this approach: Winston & Strawn. The firm’s incoming associates were previously scheduled to arrive on January 19, 2010. Now, according to a memo issued yesterday by hiring partner Joseph Torres, class of 2009 associates will be starting on one of three dates: February 1, 2010; June 1, 2010; or October 4, 2010.
Deferral extension details, including the full memo, plus other information about Winston — after the jump.


The memo states:

Having recently concluded our budgeting process for 2010, we have determined that it is necessary to make additional adjustments to your start date. Please be assured that the Firm is performing well and positioned to remain one of the preeminent law firms, even in this challenging economy.

Methinks the firm doth protest too much? Then again, it’s all relative — Winston & Strawn is postpoing start dates (again), but other firms are too.
The memo then lists the three start dates, which it appears will be assigned to incoming associates (they don’t get to choose). Roughly a third of the class will start on each of the dates.
In the last deferral announcement, Winston associates were pushed back to January 19, 2010, and told they would receive an additional $15,000 on top of their $10,000 bar stipend. What are the terms of the deferral extension?

All associates in your class not currently on a judicial clerkship will receive an additional paycheck in the amount of $1,666 for the second two weeks of January. Beginning February 1, associates not currently on a judicial clerkship who will be starting on June 1 or October 4 will receive a monthly stipend of $3,300 per month, less applicable payroll deductions. Associates in these groups will also continue to receive subsidized health insurance coverage, in accordance with the terms of the applicable Firm plans. Beginning on your start date, you will be responsible for the full associate premium contribution for the coverage you elected.

There seems to be some “deferral stipend deflation” going on. As one incoming Winston associate asked us, “Isn’t $3,300 a month a bit low of a stipend, compared to other firms, for ‘incoming’ associates deferred until October?”
It would seem so. A payment of $3,300 a month works out to less than $40,000 annualized, which is significantly lower than most deferral stipends doled out until now.
But look, incoming Winstonites, things could be worse. First, you could be out of a job. From a tipster who used to work at the firm:

[A few weeks ago I] talked to a friend at Winston. She has been there [for many] years and says she has never seen anything like this — layoffs. Some partners were asked to retire, not just left as you mentioned in one of your articles. Quite a few [support staff] were let go too.

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If you’re looking for numbers or hard data on Winston layoffs, sorry — the firm isn’t providing them. (This is why we’ve had to resort to guesswork.)
Second, under “things could be worse,” at least you got an offer. A second source reports, regarding 2009 summer associates who got no-offered by Winston:

Winston & Strawn refuses to let anyone from the firm write recommendation letters for any summers. That is complete and utter bulls**t. The partners are running their firm into the ground and are punishing their no-offered summers by not allowing associates to write recommendation letters for these summers.

In this competitive job market, 3Ls need every advantage they can get, and not having a way to show a new employer conclusive proof that you were no offered for economic reason is terrible.

Of course, cynics might question the value of such a letter of endorsement. But it probably would have been better than nothing.
A firm spokesperson did not respond to a request for comment on the foregoing information. The complete memo appears below.
WINSTON & STRAWN — MEMORANDUM — START DATE
To: Incoming Associates
From: Joseph J. Torres
Chair, Hiring Committee
Date: November 2, 2009
Re: Start Date
As we approach 2010, we have continued to monitor our clients’ demand for legal
services in light of the existing economic conditions. As you know, our hiring goals are based in part on our projected estimate of the number of attorneys we need to meet the anticipated demand for our services.
Having recently concluded our budgeting process for 2010, we have determined that it is
necessary to make additional adjustments to your start date. Please be assured that the Firm is performing well and positioned to remain one of the preeminent law firms, even in this challenging economy. However, given the uncertain market for legal services, we have established three start dates for your class:
February 1, 2010
June 1, 2010
October 4, 2010
Each of you will be contacted shortly concerning your start date. We expect approximately one-third of your class will start on each of these dates. Additional information concerning your department assignments, CLE responsibilities, as well as orientation and training schedules will be provided in the coming weeks.
All associates in your class not currently on a judicial clerkship will receive an additional
paycheck in the amount of $1,666 for the second two weeks of January. Beginning February 1, associates not currently on a judicial clerkship who will be starting on June 1 or October 4 will receive a monthly stipend of $3,300 per month, less applicable payroll deductions. Associates in these groups will also continue to receive subsidized health insurance coverage, in accordance with the terms of the applicable Firm plans. Beginning on your start date, you will be responsible for the full associate premium contribution for the coverage you elected. An explanation of the 2010 coverage terms and enrollment procedures will be posted on the New Associate Extranet in December.
As we move into 2010, we will continue to monitor our needs and may accelerate or
revise this schedule as necessary.
We realize you may be disappointed by this development. The Firm does not make such decisions lightly. However, we believe this schedule will allow us to properly manage our
provision of quality legal services and provide all of our lawyers a successful and sustainable work experience. We were fortunate to have recruited some of the best and brightest law students in the country and we want you to know that we value the contributions you will provide to the Firm.
Please feel free to call me should you have questions about anything covered in this memo. You may also contact any of our local office hiring committee members or any member of our recruiting staff.
cc:
Hiring Committee
Attorney Recruitment Managers

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