Are legal secretaries the buggy-whip makers of Biglaw? If you lose your job as a legal secretary, is it worth it trying to find a new secretarial position, or should you get new training and try to switch fields?
The latter option might be better, at least if you are still early enough in your career. Check out this interesting (but depressing) article from the Wall Street Journal, Why Legal Secretaries Can’t Find Jobs. One of the secretaries mentioned in the article is still looking for a new permanent position some four years after he was Lathamed.
And, sadly, the layoffs of legal secretaries show no sign of abating. On the heels of the Weil Gotshal layoffs — in which 60 associates and 110 staffers, including 60 legal secretaries, lost their jobs — we have more cuts to report….
Ed. note: This is a new series from Bruce MacEwen and Janet Stanton of Adam Smith Esq. and JDMatch. “Across the Desk” will take 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.
Adam Smith, Esq. isn’t in the business of covering — or typically even commenting on — late-breaking news, but there’s news and then there’s news.
And the Weil layoffs were reported above the fold on the front page of the Wall Street Journal and as the lead story for much of the day in The New York Times‘ estimable “DealBook.”
To the affected associates and staff: Nothing comforting or reassuring can be said — this is dreadful, awful, horrible, bad bad news for you — but if you can gain perspective after awhile, remember that in America it’s no sin to be knocked down; the sin is not getting right back up.
Some say that San Diego has the best weather in the continental United States. But it seems that the climate there might be less than hospitable for large law firms.
Last year, Baker & McKenzie closed its office in San Diego, finding the metropolis didn’t live up to its nickname of “America’s finest city.” And now we have news of another Biglaw firm shutting down its S.D. outpost.
It’s not on the scale of the massive Weil layoffs, but the closing could cause a significant number of lawyers and staff to lose their jobs. Here are the details….
Alas, the nickname is less funny in the wake of yesterday’s big layoff news. The firm announced it will be cutting 60 associates and 110 staffers from the payroll. Despite the generous six-month severance for associates, some probably feel like their legal careers have been mangled. The firm also plans to reduce the compensation of about 10 percent of its partners (roughly 30 out of 300, some income and some equity partners).
Let’s take a closer look at the layoffs and try to make sense of them….
This year has seen a grim procession of law firm layoff news, which seemed to pick up momentum just yesterday with the Weil Gotshal lawyer layoffs and the Jones Day staff cuts. Are we looking at a 2008 redux, or is this just a bump in the road as the economy makes its slow recovery?
The Weil news was particularly stunning. If any firm seemed poised to thrive in the post-recession “new normal,” it was Weil, with its diversified practices and hegemonic restructuring group. Alas, with yesterday’s news of Weil’s decision to cut 7% of its associates and slash annual compensation for 10% of its partners by hundreds of thousands of dollars, it is clear that Biglaw job security is a thing of the past.
Let’s explore the reasons behind law firm layoffs, review a chronology of recent reductions, and obtain your views through a reader survey….
At the end of May, my colleague David Lat wondered, “Are layoffs becoming daily news in Biglaw once again?” Given recent events — in particular, the reckoning at Weil — we think it’s now fair to answer that question with a resounding yes.
Today, we’ve got news that a Biglaw shop known for its strict dress code and its fervent recruiting of Supreme Court clerks has decided to conduct a second round of layoffs, mere months after serving a slew of staffers with their walking papers…
Since the Supreme Court’s ruling in Fisher, the major affirmative action case, turned out to be something of a dud, the big legal story of the day is the news out of Weil Gotshal. The firm is conducting large layoffs of both attorneys and staff, as well as reducing partner pay.
Thus far, many of our recent layoff stories have involved staff layoffs, especially secretarial layoffs; relatively small numbers of affected individuals; and firms not in the tippy-top tier of Biglaw. So that’s what makes the Weil news so notable — and so frightening.
Weil is an elite firm, in both profits and prestige. The cuts it just announced affect lawyers, not just staff, and reach into the triple digits….
* I would totally go see “Jaws 2013: Lawyers On The Beach.” [The Legal Geeks]
* Downey Brand laid off support staff this week. Man, I thought that laundry detergent was recession-proof… oh, wait, I’m being told that Downey Brand is law firm, a very well-scented law firm. [ABA Journal]
* It’s illegal to burn you ex’s clothes? Bah. Next you’re going to tell me you can’t set fire to his car. [Legal Juice]
* Manhattan District Attorney Cy Vance’s inability to prosecute his political rivals makes it harder for him to do whatever he wants by threatening his political rivals with prosecution. That’s not exactly a bad thing. [Simple Justice]
* Oh look, the FAA might finally acknowledge that making people turn off their electronic devices during takeoff and landing is a stupidrule that has absolutely no bearing whatsoever on flight safety. [Wall Street Journal]
We have previously discussed the advantages of voluntary buyouts over layoffs, especially stealth layoffs. 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.
Imagine you’re a legal secretary at one firm who’s married to a high-earning partner at a different firm. You work to keep yourself busy, especially since your kids are all grown, but you don’t need your job that badly. You might take a buyout package and retire a few years early so that one of your fellow secretaries, a single mother with two young kids, can put food on the table.
Voluntary programs are so much better than layoffs — which is why we were happy to hear that rumors of secretarial layoffs at one firm actually turned out to refer to a buyout program. A program with rather generous terms, in fact….
Ms. JD is hosting their 2nd annual cocktail benefit to raise money for the Global Education Fund. The event will be held on August 21, 2014 at 111 Minna in San Francisco. Our goal is to raise $20,000 to fund the legal educations of four dedicated law students in Uganda who count on our support to continue their studies at Makerere University during the 2014-15 academic year.
The Global Education Fund enable womens in developing countries to pursue legal educations who otherwise would not have access to further education. According to the World Bank, investment in education for girls has one of the highest rates of return to promote development. In Uganda, more than 45% of women over the age of 25 have no schooling at all, and men are more than twice as likely as women to have access to higher education. Together, we can work to end educational inequality. For more information about the program, please visit http://ms-jd.org/programs/global-education-fund/
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: email@example.com.
We at Kinney Asia have made a number of FCPA / White Collar US associate placements in Hong Kong / China thus far in 2014. Most of such placements have been commercial litigation associates from major US markets, fluent in Mandarin, switching to FCPA / White Collar litigation. Some have already had FCPA experience, but those are difficult candidates for firms to find (this will change in coming years as US firms are now promoting FCPA / White Collar to their 2L summers who are fluent in Mandarin and have an interest in transferring to China at some point).
Legal Week quoted Kinney’s Head of Asia, Evan Jowers, extensively in the following relevant article here.
There is a new trend in the market, though, where mid-level transactional US associates, fluent in spoken Mandarin and written Chinese, are interviewing for and in some cases landing junior FCPA / White Collar spots in Hong Kong / China at very top tier US firms.
When the LexisNexis Cloud Technology Survey results were reported earlier this year, it showed that attorneys were starting to peer less skeptically into the future, and slowly but surely leaning more toward all the benefits the law cloud has to offer.
Because let’s face it, plenty of attorneys are perhaps a bit too comfortable with their “system” of practice management, which may or may not include neon highlighters, sticky notes, dog-eared file folders, and a word processing program that was last updated when the term “raise the roof” was still de rigueur.