Interesting things are afoot at Kasowitz Benson these days. Last month, we wrote about the prominent litigation firm’s “benchmark” bonuses — which some tipsters told us were bogus, but other sources defended (see the updates to the post).
Over the weekend, we received a cryptic tip about KBTF: “Kasowitz will be laying off a large number on Monday. From staff all the way up to partner.”
It’s now the end of the business day. Has this prediction come to pass?
(Please note the multiple UPDATES added to this post after its original publication.)
Today’s Biglaw layoff story involves a firm that’s even more impressive. This firm has been recognized as a great place to work by Fortune, Crain’s, and Above the Law. In fact, it topped our list of the 12 top rated firms for 2013.
Which wonderful law firm is parting with some people, and why?
As an instructor he’s a bit of a fascist, but you can’t help but feel sorry for Professor Hitler as he finds out that the law school scam is coming to an end. When a law school announced that tenured faculty were on the chopping block, some sharp minds put together a Downfall video to capture the feelings of law professors facing their fears over rejoining the private sector.
* According to the latest Citi report, the Am Law 50 outperformed the rest of their ilk in terms of net profits and profits per equity partner. As for the rest, ha ha ha, enjoy all of your “modest” returns. [Am Law Daily]
* The ABA’s Standards Review Committee is close to a decision on its bar-exam passage standard for accreditation. It’s tough to protect students and law schools at the same time. [National Law Journal]
* Oh my! Professors at Albany Law are incredibly pissed the school would dare imply they suggested lowering academic standards to put asses in seats and stave off faculty layoffs. [New York Law Journal]
* Wendy Davis has left her position at Cantey Hanger, one of Fort Worth’s largest law firms, to dedicate herself fully to her bid to become Texas’ Next Top Governor. You stand, girl! [Fort Worth Star-Telegram]
* Yuna, a Malaysian pop star with a law degree who’s worked with artists like Pharrell, doesn’t think she’ll be able to fall back on her J.D. now that she’s in America. Funny, because many Americans feel exactly the same way. [Pittsburgh City Paper]
As more and more people discover that law school is not the “get rich quick” scheme that they once thought it was, applications continue to plummet. As of late January, law school applications were down 13.7 percent from where they were in 2013. The loss of student revenue is killing the bottom line at some law schools, and members of their administrations don’t like it one bit.
These ivory tower inhabitants seem terrified and are reacting accordingly, having been forced to deal with the dearth of applicants and enrollees in all sorts of ways. Some law schools are doing the right thing and lowering tuition in the hopes of luring students to their once hallowed halls.
Others are hacking and slashing away at their faculty and staff, just like law firms. First came news of the potential purge of junior faculty at Seton Hall (which was fortunately averted). Next came the staff massacre at McGeorge. Then Thomas Jefferson started handing out pink slips, and all hell broke loose.
Which law school is the latest to announce a possible pruning of its ranks? We’ll give you a hint. This law school is located in New York, a state with 15 law schools to choose from, several of which have been sued over their allegedly deceptive employment statistics…
(Please note the multiple UPDATES added to this post.)
* Justin Bieber has hired Miami’s Roy Black to represent him in his DUI and drag racing arrest. This news is most welcome to E! who is salivating over the prospect of The Biebs making a cameo on the Real Housewives where Roy’s wife stars. [People]
* Oh, morons. If the police post that they’re looking for you on Facebook, don’t share that on your personal page. [Legal Juice]
* Virginia’s Attorney General, Mark R. Herring, decided to “pull a Holder” and stop enforcing the state’s gay marriage ban. Welcome, Virginia, to the ranks of progressive states like Utah and Oklahoma. [New York Times]
* Slate’s Dear Prudence got a request for advice from a lawyer. To quote our tipster, “This is just the usual tale of (lawyer) boy meets (lawyer) girl, falls in love, and then gets an inferiority complex because she has been more successful than he.” [Slate]
* Why make data-driven decisions, when rash emotional outbursts are so much more fun? Well, Jay Edelson and Chandler Givens explain why clients need to be counseled to make more logical decisions. [Legal Solutions Blog / Thompson Reuters]
Now that the holidays are behind us, it’s likely that law firm layoffs will resume. Earlier today, we covered a reduction in force at one firm that recently went through a merger.
As you can see from looking through our past coverage of layoffs, many of Biglaw’s biggest names have laid off lawyers and staff over the past year. Prestige and profits are no protection from the grim reaper of jobs.
Ed. note: This is the latest installment in a series from Bruce MacEwen and Janet Stanton of Adam Smith Esq. and JDMatch. “Across the Desk” takes a thoughtful look at recruiting, career paths, professional development, human capital, and related issues. Some of these pieces have previously appeared, in slightly different form, on AdamSmithEsq.com.
One of the thorniest issues any leader has to deal with is telling senior-level underperformers that they’d be better off elsewhere. It calls on every skill in the manager’s bag of tricks, from financial analysis to subtler cultural and personality judgments, and accurate perspective on the impact on the organization overall of asking a high-profile person to leave.
To be honest, it’s also one of the most difficult challenges we deal with in advising firms about their paths forward. Although at times it’s crystal clear what needs to be done, far more often you have no such luxury of being able to shortcut analysis and judgment, and you have to work through all the potential interactions and repercussions to decide with some degree of confidence what to do. Then of course you actually have to do it. You’d be surprised — or maybe you wouldn’t — how often otherwise hard-headed and decisive leaders never quite get around to that part of it….
Let’s not mince words: Patton Boggs is stuck in the muck. In the most recent Am Law 100 rankings, the firm showed a 15 percent decline in profits per partner — one of the biggest dips in the entire survey, contrasting with the modest growth that most of Biglaw enjoyed. Gross revenue also fell, by 6.5 percent.
The Am Law 100 rankings looked at 2012 performance compared to 2011 performance. Perhaps things have improved for Patton Boggs in 2013?
Alas, no. While many firms have resorted to voluntary buyouts or layoffs of support staff this year, few have laid off lawyers (at least not openly). But Patton Boggs has already been through two significant, open and notorious rounds of layoffs in 2013 to date, affecting not just staff but lawyers as well.
How is Patton Boggs trying to save itself, and will its plan work?
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past seven years. You can reach them by email: firstname.lastname@example.org.
It’s that time of year again when JDs are starting to apply for 2L summer jobs and 2L summers are deciding which practice area to focus on.
For those JDs with an interest in potentially lateraling to or transferring to Asia in the future, please feel free to reach out to Kinney for advice on firm choices, interviewing and practice choices, relating to future marketability in Asia, or for a general discussion on your particular Asia markets of interest. This is of course a free of cost service for those who some years in the future may be our future industry contacts or perhaps even clients.
For some years now Kinney’s Asia head, Evan Jowers, has been formally advising Harvard Law students with such questions, as the Asia expert in Harvard Law’s “Ask The Experts Market Program” each summer and fall, with podcasts and scheduled phone calls. This has been an enjoyable and productive experience for all involved.
If you are considering a virtual law practice, you know that many of today’s solo firms started that way. But why are established, multi-attorney law firms going virtual?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Reduces malpractice risk
Enables you to gather the best attorneys to fit the firm, regardless of each person’s geographic location
Leverages mobile devices and cloud technology to enable on-the-spot client and prospect communication
Transitioning in-house is something many (if not most) firm lawyers find themselves considering at some point. For many, it’s the first step in their career that isn’t simply a function of picking the best option available based on a ranking system.
Unknown territory feels high-risk, and can have the effect of steering many of us towards the well-greased channels into large, established companies.
For those who may be open to something more entrepreneurial, there is far less information available. No recruiter is calling every week with offers and details.
In sponsorship with Betterment, ATL and David Lat will moderate a panel about life in-house and we’ll hear from GCs at Birchbox, Gawker Media, Squarespace, Bonobos, and Betterment. Drinks, snacks, networking, and a great time guaranteed. Invite your colleagues, but RSVP fast, as space is limited.