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Staff Layoffs

Nationwide Layoff Watch: Goodwin Procter Makes Grown Men Cry?

goodwin Procter logo.JPGIt’s been a tough day at Goodwin Procter. Multiple tipsters report that the firm is laying off both attorneys and staff today. One source reported on the human toll of losing your job:

[L]awyers were just laid off this morning at Goodwin Procter in Boston. There are both men and women crying in the halls.

It’s not clear what triggered the tears, since Goodwin handled the dismissals professionally, appropriately, and in a manner similar to other top firms. Are Goodwin guys just more sensitive?

Goodwin has laid off 21 attorneys and 34 staff. Here is the critical part from the firm-wide memo Goodwin Procter just sent out to its associates:

In anticipation of a slow economic recovery, we took a number of actions during the year to manage our staffing model, secretarial ratios and discretionary expenses. The end result was that while we were largely successful in realigning resources to meet client needs and market demand, there remains some overcapacity within the firm.

After careful deliberation, we have made the difficult decision to reduce our associate ranks by 21 people and our professional staff ranks by 34 people.

Most of the attorneys who were cut were second-year associates in the firm’s Business Law Department, out of its Boston office.

Read the full memo, after the jump.

Continue reading "Nationwide Layoff Watch: Goodwin Procter Makes Grown Men Cry?"

Staff Layoff Watch: Day Pitney Downsizes Staff

day pitney logo.jpgIncrementally, the pace of layoffs has been picking up. Perhaps firms are trying to get through all of their cuts before the holiday season?

The latest news comes from Day Pitney. A tipster reports:

Day Pitney in CT laid off 30 staff today and moved staff to lower positions.

A spokesperson from Day Pitney confirmed that the firm laid of 29 staff (not 30). The move was part of a staff reorganization and affected staffers in eight of the firm’s nine offices.

No attorneys were laid off.

Let’s check Day Pitney’s layoff history after the jump.

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Staff Layoff Watch: WilmerHale Lays Off 57 Staffers

Wilmer Hale logo.JPGWe don’t have all of the details, but multiple sources report that WilmerHale is laying off 57 staffers today (secretaries and paralegals). We understand that the staff is being informed right now.

We don’t have information about what (if any) severance package is being offered to the departed staff. Our sources report that the layoffs will affect staff in Boston, D.C., and New York offices.

Spokespeople for WilmerHale did not respond to an immediate request comment. But we hope to have more information as people are informed of their job situation.

Good luck, WilmerHale friends.

UPDATE More from our tipsters, and a statement from the firm, after the jump.

Continue reading "Staff Layoff Watch: WilmerHale Lays Off 57 Staffers"

What’s Going on at Akin Gump?
(Some staff cuts, plus news on offer rates.)

Akin Gump Strauss Hauer Feld LLP logo.jpgSo what’s happening at Akin Gump these days? There has been some happy news — e.g., a thriving energy M&A practice, lawyers honored by the Washington Business Journal as top D.C. lawyers, and a perfect score on the Corporate Equality Index of the Human Rights Campaign.

And there has been some less happy news. We’ve heard there have been a number of cuts to the staff ranks in Akin’s D.C. office in the past few weeks, as well as a few attorney dismissals here and there (not couched as “layoffs”).

Through a spokesperson, the firm confirmed some trimming of staff ranks, but declined to provide numbers:

While we do not discuss specific personnel matters, we continue to review and streamline our operations to fit the current size of the firm. This has resulted in a small number of staff reductions across the firm. We are not involved in a larger effort aimed at reducing our staff or lawyer workforce.

We hear the severance was around three months, although the firm would not confirm this.

The firm did, however, respond to our inquiry about offer rates.

Continue reading "What’s Going on at Akin Gump?(Some staff cuts, plus news on offer rates.)"

Nationwide Layoff Watch: Paul Weiss Staff Attorneys

Paul Weiss logo.JPGOne casualty of the economic recession could well be the position of “staff attorney.” We’ve reported that Skadden and Covington & Burling have had major cuts to their staff attorney programs. Above the Law is now able to report that similar reductions have happened at Paul Weiss. Sources report that at least a dozen staff attorneys have been let go by Paul Weiss over the past couple of months.

UPDATE: We are now hearing reports that the number is significantly higher than a dozen, perhaps as high as 45 (since November 2008). “This can all be confirmed by the lawyer lists that are sent out at the start of each month,” said our source.

A tipster puts it this way:

PW has sneakily let go [a number of] staff attorneys. There have been … cuts in the past few months and it is getting more steady and consistent in the last few weeks. They are letting a few people go every week. It is so ridiculous that they haven’t told anyone what’s really going on and everyone is just waiting around for the call.

Apparently they need to cut all the staff attorneys so they have some work for 80 or so first years that just started who are already doing nothing but doc review and who should expect to be doing nothing but doc review for the foreseeable future. Some of these staff attorneys have been there for seven and eight years and they are not even offering severance. They say it has nothing to do with performance but are letting some of the good people go first.

Paul Weiss declined to comment for this story. But we understand that no associates have been let go.

Are junior associates the new “staff attorney”? More from our tipsters after the jump.

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Crowell & Moring Asks Staff To Voluntarily Lay Themselves Off

Crowell Moring logo.JPGIt’s been a while since a firm asked people to voluntarily fire themselves. Maybe with the economy getting better it’s time to dust that strategy off?

Apparently, that is what Crowell & Moring is hoping for. The firm just asked its staff to voluntarily help them get down to a 4 to 1 attorney to staff ratio:

Our goal remains to handle this necessary reduction in a humane and generous way. Accordingly, effective today, we are offering a voluntary opportunity for our support services employees to elect to resign from the firm in exchange for payment of six months of each employee’s annual salary. We are hopeful that this opportunity may be of interest to a number of our secretaries and will bring the firm closer to achieving its goal of an average lawyer to support services ratio of 4 to 1 across our offices. This voluntary package will be available through October 23. At the end of that period, we will reassess our staffing levels and determine whether involuntary reductions are necessary.

Six months severance is a nice package, especially for staff who don’t typically receive as much severance pay as attorneys. If you assume that the firm will not be offering six months to people that are “involuntarily” laid off after October 23rd, the package could be a pretty powerful motivator.

Of course, if there are still no jobs in six months, then does it really matter? If you are a rock star secretary maybe you should just roll the dice and try to hang on.

Tough decisions abound during a recession. Good luck, Crowell & Moring staff.

Read the full internal memo after the jump.

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Staff Layoff Watch: Cooley Cuts 58 Staffers

Cooley Godward logo.JPGLast week, we told you that Wilson Sonsini froze staff salaries. Today, there is more pain being spread around the legal staffing world. The Recorder reports:

Fifty-eight staffers were cut Thursday, although no attorneys were let go, according to an all-hands memo from Cooley Chief Operating Officer Mark Pitchford.

“This reduction was conducted to eliminate pockets of staffing overcapacity throughout the firm,” wrote Pitchford.

Cooley laid off 62 staffers (and 52 attorneys) back in January. Last month, we reported on stealth layoffs that occurred at the firm throughout the summer.

Given the recent reductions in attorney workforce, it’s not that surprising that Cooley had an overcapacity of staff. But the math probably does not make it any easier for those that lost their jobs.

Good luck, former Cooley staffers.

Read the full firm memo after the jump.

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Staff Layoff Watch: Arnold & Porter Axes 44 Staffers

Arnold Porter logo.jpgReports are circulating today of staff cuts at Arnold & Porter. Here is one account from a tipster:

44 staffers laid off yesterday at A&P - 24 from the DC office.

Arnold & Porter confirmed the new to Above the Law a short time ago:

[Arnold & Porter] can confirm that as of yesterday our firm had a reduction in force affecting 44 staff positions in the firm’s domestic offices. These positions are mostly administrative assistant/secretarial positions; no associates or attorneys were involved in the reduction.

Ranked #18 in you Vault guides, Arnold & Porter has weathered the recession better than some other firms. The firm is actually up two spots from its #20 Vault position last year. The firm froze salaries at the beginning of year, but hasn’t resorted to cutting salaries.

But no firm is immune to the economy. Good luck, laid off staffers.

Earlier: Updated Salary Freeze Round-up: Even More Firms on Ice
Fall Recruiting Open Thread: Vault 16-20 (2010)

Winston & Strawn: The August Recap

winston strawn.gifWe received a lot of tips about Winston & Strawn during the month of August. It seems like the firm had a busy month. We’ve reached out to the firm — multiple times — but haven’t heard anything back. But multiple sources report that Winston laid off around 20 associates over the month of August.

It is not surprising that the firm did not respond to us. Tipsters report that Winston has been extremely stealthy about its associate cuts. They laid people off over a long period of time, but never more than a few associates at any one time. One tipster explains it this way:

The layoffs for attorneys started in the Spring and they took breaks from it to keep under the radar. Same with the secretaries.

As we understand it, the associates let go were mid-level attorneys. They were told that the layoffs were for economic reasons.

Associates at Winston weren’t the only ones feeling the pain of being let go. After the jump, tipsters report that partners have been shown the door as well.

Continue reading "Winston & Strawn: The August Recap"

Staff Layoffs at K&L Gates: It’s Not The Number, It’s The Manner

KL Gates logo.JPGMultiple independent sources report that K&L Gates had a minor spate of staff layoffs late last week. One particular tipster sums up the move nicely:

In the Dallas office last week, five staff members are given the boot, very stealth-like.

Reason given: Not enough work to go around.

As the staff numbers sharply decrease, many attorneys are doing a larger portion of clerical (a/k/a non-billable tasks.

Naturally one would wonder is the time spent filling in for an ever-decreasing staff being billed to clients?

Five legal staffers isn’t necessarily front-page news, but you have to check out how K&L Gates went about this round of cuts.

“Screaming” details, after the jump.

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Nationwide Layoff Watch: DLA Piper Cuts 120 121

Panic button.JPGEarlier today, we told you that some DLA Piper incoming first years were worried about their standing with the firm. We’re now going to clear some runway space for that worry to take off into a full panic.

Sources report that DLA Piper has laid off 120 people today. DLA would not confirm our reports, but we have multiple independent sources telling us that 20 lawyers and 100 staffers are being let go today.

Update (1:11 PM): The firm is now confirming that DLA laid off 121 people: 21 lawyers and 100 staff. Read the full statement after the jump.

No word on severance, but we also understand that New York and Chicago will be the offices that are hardest hit by today’s news.

Some instant DLA history, and an update from the firm, after the jump.

Continue reading "Nationwide Layoff Watch: DLA Piper Cuts 120 121"

Nationwide Salary Cut Watch: Firms in the Pacific Northwest Also Feel Gloomy

Salary Cuts.jpgAbove the Law has received reports that Schwabe, Williamson & Wyatt will be cutting associate salaries and laying off staff. Never heard of Schwabe Williamson? Well then you need to Lewis & Clark your way out to the Pacific Northwest more often.

Schwabe Williamson is the second largest firm in Portland, OR. According to NALP, the firm has 170 attorneys across six offices (3 in Oregon, 2 in Washington, and an office in Washington, D.C.).

First year associates start at $110,000 at Schwabe. This fact already bothers junior attorneys there, and our tipsters report grounds for increased dissatisfaction among the rank and file:

SWW will be announcing pay cuts for its associate attorneys in the range of 5% - 10% on June 15th.

At least the associates should still have jobs. The news for the staff is much worse. We understand that a number of staffers are going to be let go, but we don’t have official numbers.

Staffers that we spoke with felt that there were other cuts the firm could have made before the firm started firing people.

More details and an official statement from the firm after the jump.

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‘Black Monday’ For Simpson Thacher Staff

SimpsonThacher.gifSimpson Thacher laid off a number of staffers yesterday. Our sources report that there was massive confusion for associates and clients while the cuts were being made. People around the office have been calling it “Black Monday,” and it looks like the firm isn’t done laying people off.

Simpson Thacher did not respond to our multiple requests for comment.

But our sources report that the layoffs started Friday night. On Friday, the firm fired its overnight document duplication team, and made reductions to the shift that starts at 6:00 p.m. Sources report that the cuts affected 10 - 20 people.

The employees were escorted out by security Friday evening.

But that is not what caused the confusion on Monday morning. More details after the jump.

Continue reading "‘Black Monday’ For Simpson Thacher Staff"

Staff Layoff Watch: Paul Hastings Re-Centers 25 Staffers

Paul Hastings logo.JPGIn this economy, firms are looking for efficiency wherever they can find it. Above the Law has been able to confirm that 25 staffers will be let go at the end of July as Paul Hastings moves its document production services to its Los Angeles office. The goal, as we understand it, is to centralize the firm’s document production services and make them more efficient.

The move will result in 25 terminated positions in New York and other Paul Hastings offices around the the country. But the firm is also creating new positions for staffers in L.A.

The affected personnel have been informed of the cuts. But Paul Hastings’s spokespeople report that those staffers have been encouraged to apply for the new L.A. document work. Successful applicants will have their relocation expenses paid by the firm.

And the weather is nicer in L.A.

Staffers who are unable to secure a position in L.A. — or who simply don’t want to go — will receive a severance package.

As Maria von Trapp might say: Whenever God closes a door, somewhere He opens a window. Of course, Maria von Trapp married a super wealthy guy but still ended up living in Vermont, so maybe she doesn’t have the most applicable advice.

Perhaps Micheal Ray Richardson has some advice that is more relevant to the current situation?

Earlier: Prior ATL coverage of staff layoffs

Staff Layoff Watch: Dorsey & Whitney Shows 55 Employees the Door

Dorsey Whitney logo.JPGBad news coming out of Minneapolis today. A Dorsey & Whitney spokesperson has confirmed to Above the Law that 55 staffers have been let go.

The firm tell us that the 55 staffers represent about 7% of Dorsey & Whitney’s support staff. The layoffs took place across seven of the firm’s offices, but the spokesperson tells us that Minneapolis was the hardest hit.

Tipsters report that 38 of the 55 staffers were based in the firm’s Minneapolis office.

As far as we know, this is the first round of economic layoffs for Dorsey (#87 in your Vault guides). The firm has frozen associate salaries, but has largely avoided some of the more aggressive cost cutting measures we’ve seen from other firms.

Of course, the firm’s overall ability to avoid the worst of the economic recession is of little solace to the staff that lost their jobs today.

Good luck to those let go. Who knows, maybe Thor Anderson needs some extra help?

Earlier: Nationwide Pay Freeze Watch: Dorsey & Whitney

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

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.

Continue reading "Staff Layoff Watch: General Motors Won’t Save Weil Staff"

Covington & Burling Staff Attorneys: An Endangered Species?

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

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.

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

Kirkland & Ellis Staff Cut Follow Up

kirkland ellis logo.JPGLast week, we reported on staff layoffs at Kirkland & Ellis. At the time, we didn’t know the full scope of the Kirkland cuts. While the firm still declines to comment on its layoffs, our sources have been hard at work.

It now appears that at least 80 staffers were let go from Kirkland. Most of them were informed on Friday, but additional people who were not in the office on Friday were told on Monday. The cuts only took place in Chicago, New York, and D.C.

No attorneys have been let go, and our tipsters report that attorneys feel relatively secure in their jobs. People we spoke to claimed to be on track with their hours.

Secretaries were the main focus of the layoffs. But a tipster also reports that mail room staff and record keeping personnel were also hit pretty hard.

Earlier: Staff Layoff Watch: Kirkland & Ellis

This Week In Layoffs: 04.18.09

Law Shucks layoffs layoff tracker.jpg[Ed. note: Above the Law has teamed up with Law Shucks. Law Shucks has done excellent work translating all of the layoff news into user-friendly charts and graphs: the Layoff Tracker.]

Speculation was that last week’s relatively low bodycount (100 lawyers, 253 staff) might have been a result of the Easter and Passover holidays, but that trend continued into this week. With just 131 layoffs confirmed at major law firms this week, four of the last five weeks have been among the slowest this year. Is the tide turning? The pessimist in us suspects we’ll see another wave as first-quarter results are finalized.

Layoffs slowed in the broader markets as well, with first-time claims dipping slightly, but continuing claims keep breaking records. So even though the pace of layoffs may be slowing, there still isn’t any significant hiring to offset the job losses.

The big story in law firm layoffs this week was Skadden’s deferral program, mostly because it was picked up by the New York Times. They’re far from the only firms doing so, though, so check the ATL Start Date Round Up.

Of course, deferrals only apply to associates. Staff attorneys need not apply - msnbc.com has the story of Frank Scudere. Skadden gave Frank a break and didn’t fire him when the firm cut a host of other staff attorneys on January 16, but only because he was still drying off after being on the plane that crash landed in the Hudson River. His luck didn’t last long, though. He lost his father a week later and his job last month. Scudere’s tough breaks qualified him for ATL’s (Laid-Off) Lawyer of the Day on Friday.

After the jump, we analyze layoff and other cost-saving activities this week.

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