Staff Layoffs

Dewey Have Any Partners Left To Be Poached? Not Many After the Latest Departures

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The revolving door continues to spin, quite furiously, at the rapidly collapsing Dewey & LeBoeuf. We mentioned some of the latest partner departures in last night’s post (which we updated again this morning).

These are major defections, which strike at the heart of what was left of the firm. In case there was any doubt after last Friday’s WARN Act notice or yesterday’s big layoffs, it may soon be time to stick a fork in LeBoeuf.

So what’s the latest word on who is going where?

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Dewey Have an End in Sight? Friday Will Be the Last Day for Many Employees

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On Friday, we broke the news of Dewey & LeBoeuf issuing a WARN Act notice to its U.S. employees. As explained by the U.S. Department of Labor, the WARN law generally requires an employer “to provide notice 60 days in advance of covered plant closings and covered mass layoffs.”

We noted, however, that employees shouldn’t be lulled into complacency by the 60-day requirement. As Elie wrote, “Dewey employees shouldn’t expect to just show up to work every day until Independence Day. Remember, we’ve learned from the Heller dissolution and other firms’ dissolutions that things tend to happen very quickly.”

Very quickly indeed. We are now hearing reports that this Friday, May 11, will be the last day for an unknown number of D&L employees….

As usual with the fast-moving Dewey story, we have multiple UPDATES, including some from Tuesday morning, after the jump.

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When Dewey WARN People?

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The U.S. employees of Dewey & LeBoeuf received a letter today that many of them have been expecting for a long time.

It was a note warning people to prepare for the worst. It was a letter finally admitting to firm employees that “it is possible that adverse developments could ultimately result in the closure of the firm.”

So, now we’re on notice…

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Dewey & LeBoeuf: A Paralegal’s Lament

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Thus far, the story of Dewey & LeBoeuf has been told primarily from the perspective of lawyers. On the whole, the coverage has been quite partner-focused, centered on which partners are defecting to which rival law firms. There has been some discussion, but not a huge amount, of the plight of associates.

There has been even less discussion of the support staff. But if Dewey goes under, staffers will also lose their jobs. And in this day and age of law firms slashing staff, secretaries and paralegals may have a harder time finding new positions than attorneys.

Here is one paralegal’s perspective on what’s going on at D&L….

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Covington Prevails in Discrimination Suit Brought by Yolanda Young

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Yolanda Young probably isn't smiling today.

Litigation against law firms: it’s all the rage right now. Earlier this week, Sara Randazzo of Am Law Daily did a round-up of over a dozen lawsuits in which law firms have been named as defendants.

Such lawsuits come, and such lawsuits go. Let’s look at the “going” side of the ledger. A federal judge just dismissed the high-profile lawsuit filed by Yolanda Young — a pundit, published memoirist (affiliate link), and Georgetown-trained lawyer, as noted on her website bio — against the elite D.C. law firm of Covington & Burling….

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Dewey Owe Too Much to Certain Partners?

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On Friday, we broke the news of lawyer and staff layoffs at Dewey & LeBoeuf. There have been reports of the firm experiencing financial issues, and these cost-cutting measures appear to be part of a larger plan of attack. According to the memo sent out by chairman Steven H. Davis, Dewey plans to “reduc[e] the number of lawyers and administrative staff globally by approximately 5% and 6% respectively.”

But associates and support staff aren’t the only ones who will be feeling the pain. It appears that Dewey is seeking sacrifices from certain partners as well….

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Dewey Have Comment on Recent Developments?
Yes — Firm Is Cutting 5 to 6 Percent of Personnel

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The rumor mill has been churning nonstop over the past week about Dewey & LeBoeuf. In our recent stories about the firm, we’ve discussed reports of financial difficulties, partner departures, and possible layoffs of lawyers and staff.

During this time, firm management has remained fairly tight-lipped. But earlier this evening — a Friday evening, of course — the firm broke its silence. Chairman Steven H. Davis sent out a firm-wide memo, acknowledging the rumors and confirming that yes, Dewey will be conducting some layoffs and engaging in other cost-cutting measures.

Let’s take a look at the memo….

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Yes — Firm Is Cutting 5 to 6 Percent of Personnel“

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Staff Layoff Watch: Bingham McCutchen Makes Cuts

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We’re getting the sense, based on anecdotal evidence showing up in our inbox, that law firms are quietly making cuts to the ranks of attorneys and staff. They’re doing so somewhat stealthily, however — in dribs and drabs, spread out over decent stretches of time, often invoking performance reasons. So we’re having a hard time obtaining enough information on any one firm to issue a report.

We need your help in keeping law firms honest. If you have layoff news to report, please send it our way, by email or by text message (646-820-8477 / 646-820-TIPS). As you’ve probably already noticed, we do not name our sources.

One firm that’s being commendably upfront about its reductions is Bingham McCutchen. This afternoon, the firm announced some staff layoffs….

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The Growing Trend of Staff Layoffs: Fulbright and Goodwin Announce Cuts

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Over the summer, we wondered: what can law firms do to prepare for a possible double-dip recession?

One obvious answer: firms can “right-size” themselves, by making sure that they are as lean and as mean as they can be. And this seems to be what has been happening over the past few months.

We haven’t seen much in terms of lawyer layoffs lately, but staff layoffs are another story. In fact, on the staff side, we seem to be looking at a trend of firms reducing their permanent staff positions in favor of outsourcing.

Since August, we’ve learned of staff layoffs at O’Melveny & Myers (75 positions) and Paul Hastings (45 positions) — both as a result of domestic outsourcing to outside service providers. In addition, Pillsbury Winthrop announced that it might have to cut staffers who aren’t willing to relocate to its new Professional Services Center in Nashville. This prompted us to ask: Is On-Shore Outsourcing the Biglaw Wave of the Future?

The answer seems to be yes. Today we bring you news of additional staff reductions, at Fulbright & Jaworski and Goodwin Procter, both involving outsourcing….

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Staff Layoff Watch: O’Melveny & Myers Replaces 75 Humans With Technology

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The big news this morning is bad news for the staff at O’Melveny & Myers. News started leaking out last night that the firm would be laying off 75 support staff members.

The firm has confirmed the news that was first published in The Recorder.

Approximately half the of the laid-off O’Melveny staffers will be cut outright. The other half will have the opportunity to be relocated to scenic West Virginia….

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