Biglaw, Layoffs, Secretaries / Administrative Assistants, Staff Layoffs

Nationwide Layoff Watch: 'Technological Changes' Claim Another 29 Jobs

First this firm tried voluntary buyouts; now it's resorting to layoffs.

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Although the Am Law 100 firms are doing well financially, they have not gotten fat and happy. Instead, they continue to be proactive about managing expenses, perhaps anticipating the next economic downturn. If this allows firms to weather the next recession well, then it’s a good thing — but it’s still rough news for employees affected by cost cutting.

Let’s talk about Proskauer Rose. The firm grew its profits per partner by 7.7 percent in 2014, to a robust $2.1 million. But this profitability didn’t stop the firm from laying off 20 secretaries and 9 additional staff, in cuts announced internally yesterday.

The firm is moving to the “shared services model” that’s all the rage in Biglaw right now. According to one Proskauer source, “Secretaries were told at a special meeting that many would be fired within the hour and to wait by their phones — if no call, safe. Associates were advised at a simultaneous meeting that they no longer will have their own assistants.”

Proskauer did try the carrot before the stick. Back in November 2013, the firm offered voluntary buyouts to more than 100 employees. But perhaps an insufficient number of employees accepted the offer, bringing us to layoffs about a year and a half later.

We reached out to Proskauer for comment. The firm confirmed the cuts in the following statement:

As the legal industry continues to transform and embrace technological advancements, Proskauer will modify the way it provides secretarial services and certain other support functions, effective May 13, 2015.

In New York, the firm will move toward a shared services model in which secretaries operate in teams. This approach, which has been adopted by a number of other law firms, will allow Proskauer to enhance collaboration, distribute work more equitably, leverage advances in technology and, most importantly, serve our clients more efficiently. As a result, a small number of support personnel will be leaving the firm. Proskauer has offered the staff members affected by these changes a generous package that includes severance commensurate with their years of service, as well as a year of paid health benefits.

We believe these changes are essential and remain focused on continuing to provide clients with strategic and innovative legal services.

It’s substantially similar to the internal memo, which we’ve reprinted on the next page. The main difference is the internal memo provides the exact number of affected employees: 20 secretaries and 9 other support personnel. A year of health insurance could soften the blow.

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Good luck to these 29 individuals as they explore new opportunities. Most firms are reducing rather than boosting the ranks of legal secretaries, but on the bright side, Biglaw is financially flourishing overall (although some of this profitability is driven in part by cost cutting, including layoffs). If you’re good enough to get a job at Proskauer, perhaps you can slide down the totem pole to a smaller or less prestigious firm.

If your firm is reducing the ranks of its lawyers or staff, whether through open layoffs or stealth layoffs or voluntary buyouts, let us know. You can email us or text us (646-820-8477). Thanks.

(Flip to the next page for two Proskauer memos: the memo sent to everyone at the firm, and the memo sent to lawyers.)

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