Update: Howrey has confirmed that 94 people were laid off. More information here.
Howrey LLP has been generating a lot of news recently. Last week, the firm got hit with a $30-million racial discrimination suit by a former Brussels-based associate. But the rumor mill there was already churning with other, more depressing news here in the U.S.
Sources say that 100 people were laid off today. The firm has confirmed that layoffs took place, though it won’t confirm the numbers. Update (Feb. 3): Howrey gave solid numbers to AmLaw Daily today. The 100 figure was pretty accurate. The exact figure was 94 people: 29 associates and 65 staff. We’ve also heard reports that the firm asked some associates to go part-time
From a tipster:

Howrey has just internally announced sweeping layoffs, something everyone here saw coming for a very long time once the 2009 numbers came out. This is the first time I’ve heard Howrey actually use the word “layoff” in an e-mail to its associates.

An email went out this afternoon from managing partner and CEO Bob Ruyak. Here’s an excerpt from the email, available in full, along with a firm statement, after the jump:

While demand from clients for our services remains stable, it does not, unfortunately, provide enough work for all of our attorneys and staff to be fully utilized.

This contradicts what associates were told on a recent firmwide conference call…

A tipster says:

At the last quarterly conference call, associates were told that the last quarter of 2009 looked to be on the pace of 2008 (i.e., we’d end the year flat) and that Howrey was not laying anybody off.
I cannot see how that statement and Ruyak’s statement can be reconciled. One or the other must be untrue.

Howrey has (had?) 750 325 – 335 associates in 17 offices. Reports indicate that paralegals and secretaries are being laid off in greater numbers than associates.
Howrey is known for its strong IP practice. Even that field has not proved immune to the recession, reported the Baltimore Business Journal last year:

Intellectual property law has a diehard reputation as being singularly immune to the pitches and swirls of the economy. The thinking is that even in lousy times, companies are willing to spend to protect their trademarks, patents and copyrights — in short, their livelihoods. But as the recession wears on, even this stalwart sector is showing some signs of stalling.
“IP has traditionally been considered recession-proof, but IP is feeling it this time. It isn’t feeling it as dramatically as other areas, but it is being felt in various sectors,” said Timothy J. Oyer, president and managing partner at Wolf, Greenfield & Sacks PC in Boston.

Howrey apparently felt it.
Below are Robert Ruyak’s email and Howrey’s official statement.
Intellectual property law feeling recession’s sting as filings decline [Baltimore Business Journal]
EMAIL FROM HOWREY CHAIRMAN AND CEO ROBERT RUYAK
This is to announce that the firm has implemented a reduction-in-force in its U.S. offices affecting associates and staff. Today’s action was taken as part of an on-going effort to reposition the firm to meet the demands of a competitive legal marketplace. The firm will offer each of those affected employees a comprehensive separation package that includes resources to support transition. We seek your patience and respect for those being notified as we make contact with and notify each affected person.
The firm did not arrive at this decision lightly. The fact of the matter is that while demand from clients for our services remains stable, it does not, unfortunately, provide enough work for all of our attorneys and staff to be fully utilized. We believe that this reduction will adjust staffing levels to match our current and anticipated workflow for the balance of the year, and allow the firm to maintain its strong competitive position in the marketplace. We, of course, have no way of predicting the future with certainty. But we believe these actions today are sufficient to match with our needs going forward.
As you know, this has been a rough eighteen months for the legal profession. Throughout 2009, we saw the nature of the demand for legal services change extensively. We made adjustments throughout the year to these new realities. We worked hard and were successful at maintaining our workload and, unlike many firms, did not have to make extensive personnel cuts and or deferments. We did so by maintaining the demand for our legal services, through strict expense management and control, and with cost reduction efforts that provided savings in and beyond 2009. In the end, though, our financial results for 2009 were not up to our expectations. The changes in the demand for legal services seen in 2009 are here to stay, and we must reposition ourselves to accommodate those changes.
We will be conducting our regular quarterly meetings over the next several weeks. In the meantime, I hope I can count on your sensitivity and innate kindness for those who leave, to let them do so with dignity and appreciation for their contributions to the firm.
HOWREY STATEMENT
The reduction-in-force, which took place today in our U.S. offices, affected both associates and staff. This action was taken as part of an on-going effort to reposition the firm to meet the demands of today’s competitive legal marketplace.
The last eighteen months have been rough for the legal profession. Throughout 2009, like other firms, we saw the nature of the demand for legal services change extensively. We continue to make adjustments to meet those new realities.
Howrey starts 2010 in good shape- consistent client demand, tight control of expenses and effective strategies for growing our client base in both the United States and Europe.
The bottom line for us means focusing our expertise, our resources, our technologies and our people to win for clients. That is what we do best and that is what will get us through this challenging time for our industry.