Things are only going to get worse at Reed Smith, it seems.
Last time we checked in with them, a plucky group of associates were complaining about morale in the New York office — with this recent turn of events, are things going to get any better?
The firm has announced worldwide layoffs — 45 attorneys and a related number of staff getting the axe. Reed Smith blames the shifting legal landscape for the cuts, and it’s quick to point out that they’ve let go only 2.5% of the firm’s total attorney roster. They can shine the turd any way they want, but 45 attorneys without jobs is still a big number.
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(Update 1/15/16 9:45am: Our tipster network is hard at work once again! We’ve received word that of the 45 attorneys let go, 40 were counsel and/or partners and 5 were associates.)
Our tipsters at the firm are still reeling from the news, with one even calling the news “sickening.” The firm is providing severance packages and transition support — though for those let go, especially staff members with 20+ years of experience, it may be cold comfort.
The firm’s full statement is below:
The legal industry has experienced a fundamental shift in the nature of the demand for, and the delivery of, legal services in recent years. Like all profitable businesses, Reed Smith must be attentive to market demand and industry changes and make necessary adjustments to remain competitive. For those reasons, the firm recently undertook a review of its staffing model to ensure the firm is sized and structured to provide clients with the highest quality legal services in the most efficient manner. One step we have taken today is to restructure our legal and non-legal staff. This restructuring has affected 45 attorneys in the U.S. and EME, less than 2.5% of our attorney population, and a related number of staff.
The decision to restructure was difficult, particularly because it impacts individuals who have made meaningful and positive contributions to our firm and our clients. We are providing them with resources, including severance pay and professional job transition advisory support, to help them through this period.
The firm had another strong year in 2015, the 4th straight year of $1 billion+ in revenue, and we continue to attract top-tier talent with the experience needed and demanded by clients. In 2015 alone, over 40 new lateral partners joined us, many from our leading competitors.
Reed Smith has a clear strategy to provide the highest quality legal services in our key industries – financial services, life sciences and health, energy and natural resources, shipping, and entertainment and media – and the practices that support them. These changes will help us deliver on that promise.
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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. We love our vast network of tipsters! If you have information to share, email us or text us (646-820-8477).
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