Nationwide Layoff Watch: Litigators Left Longing For Labor

Which firm is trying to quietly reduce its attorney headcount?

It’s been a while since we’ve written about attorney layoffs at a Biglaw firm, but these reductions in headcount tend to rear their ugly heads when you’d least expect them. You’d hardly think that a firm with a global footprint would conduct layoffs during summer associate recruiting season when prospects are still weighing their offers, but sometimes such cutbacks are a necessary evil, despite their bad timing.

That having been said, if you’re a prospective Biglaw associate interested in pursuing a career as a litigator, perhaps it’s time to reassess your goals. Throughout 2015, law firms across the country have slashed the size of their litigation departments thanks to a boom in transactional work and an otherwise declining demand for litigation services.

We’ve previously covered litigation department layoffs at Goodwin Procter and Kasowitz Benson, and unfortunately, we’re now we’re able to report on stealth layoffs at a firm that was previously named one of the top litigation firms by law school pedigree. Which of the 51 firms on that list was the one to try to quietly slim down its attorney headcount?

The firm in question is Hughes Hubbard & Reed. Here’s what a source told us:

Hughes Hubbard has laid off dozens of litigation staff, associates, and counsel due to a slowdown in litigation work. The firm reported on Monday that it had excess overhead in all of its office locations and would be laying off people in several of its offices, with Kansas City taking the hardest hit.

A source told us that since July, dozens of attorneys have been let go from Hughes Hubbard’s Kansas City office, but that the largest wave of those layoffs would be taking place this week, following the firm’s announcement. We contacted Hughes Hubbard & Reed for comment, and this is what a spokesperson told us:

The information you received is completely untrue.

There have been no firm-wide layoffs. In Kansas City, we have reduced the population by a handful of attorneys and by some litigation analysts whose specific expertise was focused on a client whose litigation needs have slowed.

No layoffs are planned. Our litigation practice remains a powerhouse.

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That’s quite the different tale than what we heard from tipsters, but perhaps “we have reduced the population by a handful of attorneys and some litigation analysts” is the firm’s genteel way of saying those lawyers and analysts were shown the door, and advised not to let it hit them on the way out. Do you know what’s going on at HHR? Drop us a line.

UPDATE (4:00 p.m.): According to another tipster, the reports we’ve heard about layoffs at Hughes Hubbard are completely true. Here are some other interesting tidbits about the firm’s losses in its litigation department across all of its offices:

Several of my colleagues were let go on Tuesday. The firm lost one of its largest clients in June due to a merger and several of the firm’s litigators across all of its offices were allocated to that client’s work, not just a “handful” in KC. The firm was aware of the merger for over a year, but has been unsuccessful at securing any additional litigation work to keep people previously allocated to that work at full capacity. It’s not just the KC office that is slow but other offices as well. Litigation work for this “powerhouse” is non-existent or maybe only exists for a select few favorites in the NY office.

For what it’s worth, Hughes Hubbard sank slightly in the latest Am Law 100 rankings from No. 72 to No. 78, posting gross revenue of $394 million (a 0.5 percent drop), with a 4.9 percent year-over-year increase in revenue per lawyer to $1.185 million. For a firm that once seemed to be financially healthy, stealth reductions could potentially spell trouble.

We sincerely wish all of the lawyers and legal professionals affected by reductions at Hughes Hubbard & Reed the best of luck while they seek new employment opportunities.

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If your firm or organization is reducing the ranks of its lawyers or staff, whether through open layoffs, stealth layoffs, or voluntary buyouts, please don’t hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive — we’ll never ignore you. If you have information to share, email us or text us (646-820-8477). Thank you!

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