Hot on the heels of the layoffs at Fried Frank, we’ve got the details on yet another Biglaw firm that’s tightening its belt. Perhaps Fried Frank’s layoffs can be excused by the fact that its profits per partner dropped by 16.8 percent year over year, according to the latest Am Law 100 rankings. The latest firm has no such excuse — its profits per partner increased by 7.8 percent from 2011 to 2012.
But apparently that increase was a little too modest, because the firm is now opting to kick its older employees to the curb in favor of the latest technological advances (just like every other firm).
Which one is offering voluntary buyouts to its employees in order to welcome our new computer overlords?
November marks the beginning of the holiday season, and people are brainstorming about what they should be thankful for so they’ll have something thoughtful to say at the Thanksgiving dinner table. We’ve got a suggestion: you should be thankful that you’ve still got a job, because some of your colleagues aren’t so lucky.
Which Biglaw firm offered a significant number of employees a cornucopia of despair yesterday?
Law firms across the land are running tighter ships these days. Even if your firm breaks the $2 million mark in profits per partner, which is good enough to put it in the top quarter of the Am Law 100, there’s no reason to dilute your PPP unnecessarily.
Consider the venerable law firm of Debevoise & Plimpton, one of Biglaw’s most prestigious and profitable firms. Earlier this year, the firm parted ways with its trusts and estates practice, a move that was viewed in some quarters as designed to enhance profit.
First they came for the T&E lawyers. Then they came for the legal secretaries and other support staff….
These days, despite news of record numbers in terms of gross revenue, it seems we can’t even make it through one week without news of layoffs coming from within Biglaw’s hallowed halls. In fact, last week brought even more lamentable news from large law firms (on top of the double-digit IT outsourcing at one top firm).
Which Biglaw firm is pink-slipping employees en masse in favor of outsourcing this time?
Of all the different Biglaw constituencies, legal secretaries have probably suffered the most in terms of recent layoffs. In this technological age, lawyers do their own typing, don’t give dictation as much, and can use voice-recognition software when they do. Shorthand isn’t as valuable a skill as it used to be.
So what should a legal secretary facing a voluntary buyout or an involuntary layoff do with himself? Assuming he’s not ready to take the money and run (or retire), he should find new employment. And that might require obtaining new skills, ones that are in greater demand in 2013.
Some might tell a displaced legal secretary, “I just want to say one word to you. Just one word. Technology.” If technology taketh away jobs, it can also giveth, right?
Well, not so fast. Even techie types are getting laid off, as the latest layoff news demonstrates….
Perhaps taking advantage of the recentturmoil in the Texas offices of Weil Gotshal, Baker Botts just nabbed a lateral from WGM: Nicolas Barzoukas, an IP litigator in Houston. We don’t yet know whether other attorneys are making the same move, but it’s possible. Neither Baker Botts nor Weil responded to our requests for comment, but we do note that Barzoukas’s bio is gone from Weil’s website. (We’ve posted a cached version at the end of this story.)
So that’s the good news about Baker Botts. Now, on to the bad….
Earlier this week, we warned you about the layoff train. It’s coming down the track at breakneck speed, and there’s just no stopping it. We told you to watch out if you wanted to survive, but you didn’t believe us, and now yet another firm is facing significant cuts.
Which California-based Biglaw firm is slashing its headcount to “better position the firm for the future”?
You’d probably pack up too if you were in this secretary’s shoes.
Voluntary buyouts for support staff are going viral within Biglaw — and that’s a good thing, at least compared to the alternative of layoffs. As we’ve previously observed, “voluntary retirement programs allow employees to self-select, so that employees who are well-situated to enter unemployment can opt in, while employees who need their jobs badly can keep working.”
Whether you should accept or decline your firm’s buyout depends on many factors. What kind of savings or other assets do you have? How generous is the package being offered? Do you have a spouse who still works? Do you have dependents who rely upon your income?
We heard from one retired legal secretary in response to our recent request for volunteers willing to discuss why they took or didn’t take a buyout. You can see why this secretary entered early retirement, due to an enviable financial position and a delicious package….
Say hello to ‘Buyout Box,’ which we use in lieu of ‘Layoff Lady’ when covering voluntary retirement programs.
This past spring, McKenna Long & Aldridge made it into the Am Law 100, the nation’s 100 largest law firms by revenue. McKenna achieved this feat by posting an impressive 23 percent jump in gross revenue.
Now that it’s in the big leagues, McKenna is following the lead of other Biglaw firms by trying to get smaller (and more efficient). Like so many other top firms, it seeks to reduce its secretarial staff through voluntary buyouts….
The evolution of relationships between the genders continues. Currently, in law firms, there is an interesting conundrum; balancing the desire for a gender-blind workplace where “the best lawyer gets the work and advances” and the reality of navigating the complicated maze created by the fact that, in general, men and women do possess differences in their work styles. These variations impact who they work with, how they work, how they build professional connections and how organizations ultimately leverage, reward and recognize the talents of all.
Henry Ford sat on his workbench and sighed. A year earlier, he had personally built 13,000 Model Ts with his own hands. Fashioning lugnuts and tie rods by hand, Ford was loath to ask for help. Sure, there were things about the car that he didn’t quite understand. This explains the lack of reliable navigation systems in the Model T. But Ford persevered because he knew that unless he did everything, he could not reliably call these cars his own.
“Unless my own personal toil is responsible for it, it may as well be called a Hyundai,” Ford remarked at the time.
The preceding may sound unfamiliar because it is categorically untrue. And also monumentally stupid. Henry Ford didn’t build all those cars by hand. He had help and plenty of it. Almost exactly one hundred years ago, Henry Ford opened up the most technologically advanced assembly line the world had ever seen. Built on the premise that work can be chopped up into digestible pieces and completed by many men better than one, the line ushered in an age of unparalleled productivity.
Today, an attorney refers business because he can’t do everything the client asks of him.
There are three reasons why this is way dumber than a made-up Henry Ford story…
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 six years. You can reach them by email: [email protected].
Since late last year, things have been booming in Hong Kong / China in cap markets, especially Hong Kong IPOs. M&A deal flow has recently been getting a bit stronger as well. Although one can’t predict such things with any certainty, all signs are pointing to a banner entire 2014 for the top end US corporate and cap markets practices in Hong Kong / China. This is not really new news, as its been the feeling most in the market have had for a few months now and things continue to look good.
The head of our Asia practice, Evan Jowers, has been in Hong Kong for about 10 days a month (with trips every other month to both Shanghai and Bejing) for the past 7 months, and spending most of his time there meeting with senior US hiring partners at just about all the major US and UK firms there, as well as prospective candidates at all associate levels and partner levels, and when in the US, Evan works Asia hours and is regularly on the phone with such persons, as our the other members of our Asia team. Our Yuliya Vinokurova is in Hong Kong every other month and Robert is there about 5 times a year as well. While we have a solid Asia team of recruiters, Evan Jowers will spend at least some time with all of our candidates for Asia position. We have had long standing relationships, and good friendships in some cases, with hiring partners and other senior US partners in Asia for 8 years now.