DEWEY & LEBOEUF — MEMORANDUM — RECENT DEVELOPMENTS
From: Davis, Steven H.
Sent: Friday, March 02, 2012
To: Global Personnel
Cc: Global Partners
Dewey & LeBoeuf has, in the last couple of days, been the subject of press stories on U.S. legal blogs. These have focused on rumors regarding the firm’s financial performance, recent partner departures, and certain cost-reduction measures being implemented by the firm. We had planned to communicate these measures to the firm when we knew exactly how they would impact individual offices and departments, but given the recent press attention, I would like to explain the reasons behind the firm’s current actions.
The firm enjoyed many successes last year and saw improved financial performance, with an increase in revenues in 2011. In addition, we have achieved significantly higher revenues so far this year than in January/February 2011. At the same time, however, we, like some other firms, have also experienced a significant increase in our cost base.
Notwithstanding our results in 2011 and so far this year, the firm’s Executive Committee has decided to take proactive steps to align the firm’s resources with anticipated demand and strengthen the firm’s competitiveness in the global marketplace. Some recent partner departures have been consistent with the firm’s strategic planning for 2012, and we expect some additional partners to leave. In addition, we are reducing the number of lawyers and administrative staff globally by approximately 5% and 6% respectively. While decisions of this nature are necessary to ensure the firm’s competitiveness, they are always difficult and we very much regret the impact they have on our colleagues who are affected.
We will, insofar as practicable, keep you informed at an office/departmental level. In the meantime, we appreciate your understanding and support as we communicate personally with those directly affected.
Please direct all media inquiries to Angelo Kakolyris, our Director of Communications, at [redacted], or Steve DiCarmine at [redacted].
Steven H. Davis
Dewey & LeBoeuf LLP