Staff Layoffs

Staff Layoff Watch: General Motors Won’t Save Weil Staff

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Weil.gifWorking at a firm that gets high profile work doesn’t make you immune to the ravages of the tanking economy. Above the Law can now confirm that Weil Gotshal has laid off 79 staffers. We received the following statement from a Weil spokesperson:

Effective today, the Firm has eliminated 79 administrative positions across its US offices. The decision to undertake this action has been an extremely difficult one; the fact that many peer law firms were forced to make similar moves is of little consolation. In taking these steps, we have made every possible effort to be fair-minded and those who are affected have received severance packages that provide transitional income and benefits, with access to a range of services that include healthcare and career guidance. We believe the package we have designed to assist those whose positions have been eliminated more than meets industry norms.

For those keeping score at home, this means that Weil believes it is perfectly able to handle the mega-bankruptcy work it is involved in without the benefit of extra staffers — or a fresh class of incoming associates.
If staff isn’t safe at Weil, are they safe anywhere?
The Weil statement goes on to cite cost concerns from its clients as the reason for the layoffs:

The buyers of legal services – many of whom are experiencing declining markets or even financial distress – are demanding that their service providers produce the most cost-efficient product possible. We have to be cognizant of this industry-wide expectation and plan accordingly.

Have Weil staffers been crushed under the wheel of economic efficiency? Congratulations to the survivors. Good luck to those that have been let go. Luckily, tomorrow is Saturday. Nobody gets laid off on Saturday.
Read the full statement after the jump.

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Covington & Burling Staff Attorneys: An Endangered Species?

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staff attorney contract attorney doc review.jpgIn March, we reported that Skadden was essentially canceling its staff attorney program. We reported:

Only staff attorneys that were “integral” to ongoing matters have been kept on. And there is no word on whether those people will have any job security after their matters wrap up.

It appears that Covington & Burling is also undergoing a major reduction of its staff attorney program.
Tipsters (including some recently laid off staff attorneys) report that firm management has decided to effectively discontinue its staff attorney program. The firm has been letting go of staff attorneys at the rate of a couple per week over the last few weeks. As we understand it, as staff attorneys finish up their active matters, they are being let go.
Our sources tell us that the decision was made by firm management some weeks back. At the time the decision was made, the staff attorney manager was out of the office on vacation. When she came back, she allegedly told Covington’s staff attorneys that they should start circulating their resumes.
In some cases, laid off staff attorneys are being given a one week severance option. One week, if they sign a form promising not to sue the firm over the circumstances of their termination. Some Covington personnel that spoke to Above the Law believed that clause is proof that Covington decided to move out staff attorneys as a response to the lawsuit filed by former-Covington Staff Attorney Yolanda Young.
After the jump, we have statements from Covington & Burling, and Yolanda Young.

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Nationwide Layoff Watch: Kilpatrick Stockton and K&L Gates Make Cuts

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KL Gates logo.JPGLast month, K&L Gates fired 115 people: 36 associates and 79 staffers.

But since then, K&L Gates has made a number of smaller staff cuts in a number of its offices, including Pittsburgh and Chicago.

The firm refused to comment on its latest reductions. But our sources report that around 20 staffers have been let go from the firm today and over the last couple of weeks. The cuts are coming in the departments you’d expect when a firm is trying to reduce costs. Mailroom staff, the floating secretarial pool, these are the people getting hit right now.

Tipsters also report that in Chicago at least, the recent cuts are Bell Boyd & Lloyd legacy staffers.

Still, it’s got to be particularly tough to survive the K&L Gates March cuts, only to be caught on the backswing now. Nobody is truly “safe” in this economy, but you’d like job security to be a little more than a month-to-month proposition.

Kilpatrick Stockton fires associates after the jump.

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Staff Layoff Watch: The Bell Tolls for Skadden Staff

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Skadden logo.JPGLike many of you, we’ve heard the rumors about significant staffing cuts at Skadden all week. We now understand that all of the affected individuals have been informed, and we can now appreciate the scope of Skadden’s actions. Here is the bad news for Skadden staff:

* We understand that over 50 legal support staffers have been let go from the firm.

* In addition to those support staffers, the staff attorney program at Skadden has been greatly reduced. Only staff attorneys that were “integral” to ongoing matters have been kept on. And there is no word on whether those people will have any job security after their matters wrap up.

* The cuts were spread across all of Skadden’s U.S. offices, but at this point international offices remain unscathed.

* No associates were let go.

At some level, staffing cuts at Skadden are not surprising. Last week, we reported that two major Skadden DC partners were leaving the firm. We now understand that they took ten associates with them. We understand that associates participation in the Sidebar program has been very strong. It is a bit too early to tell what the final numbers will be for participation in that program, but our sources report that one of the reasons for the strong early numbers is that Skadden partners are using their contacts to find objectively interesting public service opportunities.

Still, fewer attorneys was bound to lead to fewer staff.

Of course, that doesn’t mean laid off staff are happy with the situation.

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Staff Layoff Watch: Gibson Dunn Lays Off 36 Staff

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Gibson Dunn.gifThe economy is continuing to shed legal jobs. Today’s news comes from Gibson Dunn & Crutcher. A GDC spokesperson just furnished Above the Law with this statement:

Due to the challenging market environment that has affected our clients and the demand for legal services, Gibson, Dunn & Crutcher has reduced its staff positions by 36 across the Firm’s nine U.S. offices. While this is a modest reduction in staff relative to many peer firms, it was nonetheless made reluctantly and with great regret. Now, more than ever, however, we must take appropriate steps to serve our clients in the most cost-efficient manner.

As we’ve said many times, legal support staffs continue to feel the brunt of the retraction in the legal market.

This is the latest cost cutting move from Gibson Dunn, which recently scaled back its summer program to ten weeks. Hopefully, it will be the last?

Good luck to the recently displaced staff at GDC.

Earlier: Prior ATL coverage of staff layoffs

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Mystery Meeting at Troutman Sanders

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Troutman Sanders logo.jpgYes, we live in a world where any firm wide meeting has to be greeted with a sense of “oh, crap.” But that doesn’t mean we can’t still hold out hope that one of these meetings will end up being completely benign.

We just received word that Troutman Sanders has scheduled an all staff meeting for 2:00 p.m. EDT today. Conference rooms have been booked at all of the firm’s offices. The purpose of the meeting was announced via firm-wide email:

Bob Webb is holding a meeting today for all of the US Firm’s staff employees to discuss a very important matter. Your attendance at this meeting is requested and we appreciate if you would adjust your schedules in order to attend. Thank you.

We collect some of our other Troutman tips, and an update about an all associates meeting, after the jump.

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Staff Layoff Watch: Jenner Block Has More Bad News For Chicago

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Jenner Block logo.JPGIt’s been a rough week in Chicago. Sidley laid off 229 people, something is happening at Katten today, and we have received confirmation that Jenner & Block has had to lay off 34 staffers.

Above the Law obtained this official statement from Jenner’s managing partner, Susan Levy:

Given the efficiency and productivity gains from these various sources, Jenner & Block is eliminating 34 support staff positions in our Chicago and Washington, D.C. offices. No attorneys are affected by these changes. We are offering generous severance packages to the individuals affected as well as outplacement services.

That is not a huge number compared to what has been going around. But it’s still pretty tough to be replaced by productivity gains during these difficult economic times.

Good luck to those let go from Jenner today. Read the full statement after the jump.

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Nationwide Layoff Watch: Latham Cuts 440 (190 Associates, 250 Staff)

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Latham Watkins LLP lw logo.jpgRecords are being set this morning at Latham & Watkins. At 8:00 a.m. Eastern time, managing partner Bob Dell sent out an email announcing that the firm is laying off 190 associates and 250 staff. These numbers are on top of any “stealth layoffs” that may have previously occurred at the firm in the past year.

Four hundred forty employees — 190 associates, 250 staff — is, as far as we know, more than any one law firm has ever laid off (not counting dissolutions). Latham is also the first Vault top ten firm to conduct major layoffs.

But Latham is also setting another record, of a more positive nature. Consistent with what we reported yesterday, the firm is offering “a comprehensive separation package, including payment of six months salary (up to total severance of $100,000) plus six months of continued medical coverage (through August 31, 2009).” This is the most generous severance package that any major law firm has given departing employees (see this table).

That will definitely soften the blow. But one LW source has a question:

No mention on any partner shifts — did they really grossly overshoot the number of associates and staff they needed for the economy we ended up with, but nail the number of partners needed just right?

According to Dell’s email, the cuts constitute approximately 12 percent of associates and 10 percent of paralegals and support staff. One LW tipster, however, tells us that in terms of U.S. associates being laid off, the number may be closer to 20 percent.

The full email from Robert Dell, plus more, after the jump.

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Nationwide Layoff Watch: Dechert Lets Go 10 Staff Attorneys

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Dechert logo.JPGRemember when being a staff attorney was a viable option in the Biglaw universe? As we have previously reported, many big firms are laying off their staff attorneys. Today, Dechert adds its name to that growing trend.

Within the past few hours, we received a number of tips about staff attorney layoffs at Dechert.

Our sources tell us that Dechert will lay off 10 staff attorneys today. The number accounts for about 1/4th of the firm’s total staff attorney force.

Dechert laid off 19 attorneys two weeks ago, and 72 staffers back in December. So this news should not be particularly surprising.

But it is another indication that the economic crisis is taking a toll on all types of Biglaw employment.

Good luck to the 10 staff attorneys leaving Dechert.

Earlier: Staff Layoff Watch: A Roundup

Nationwide Layoff Watch: Dechert Cuts 19

Dechert Ices 72 Staff Positions

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Staff Layoff Watch: Buchanan Ingersoll Conducts Second Round of Staff Layoffs
Are Attorneys Soon to Follow?

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bic layoffs no offers.jpgBack in November, Buchanan, Ingersoll & Rooney cut 15 to 25 staffers (though the firm declined to call them “layoffs”). Last week, it appears that the firm made additional cuts to its staff — and this time the firm is being clear about what is going on. Buchanan’s executive director Nolan Kurtz told Above the Law:

The firm eliminated about 25 to 30 administrative operations positions last week. Given the overall economic climate, we believe that it’s more important than ever to ensure that we have the right staffing in place firmwide.

The firm also announced the news directly to associates, on Friday. According to a tipster:

[Buchanan Ingersoll] announced Friday another round of cuts after several Harrisburg corp. and Philadelphia IP lawyers resigned….

Kurtz Buchanan told the [attorneys] that laying off staff was not because of the economy but good planning.

Will attorneys soon follow staffers into unemployment? Maybe. More from Mr. Kurtz after the jump.

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Are Attorneys Soon to Follow?”

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