Over the past year or so, we’ve heard a steady trickle of negative news out of Dickstein Shapiro. The trickle has turned into a stream, so it’s now time to share what we’ve learned.
Let’s start with the numbers — grim numbers. Yesterday the Legal Times reported on what it described as Dickstein’s “worst year in more than a decade.” Revenue fell by 20 percent in 2013, and net income dropped even more sharply, by 35 percent. According to the Legal Times, the firm’s 2013 net income of $36 million is the lowest the firm has seen since before 1998, its first year on the Am Law 200.
Chairman James Kelly tried to spin this performance as “restructuring” and “investment,” as the firm focuses on its core practice areas. According to Kelly, “We made a strategic commitment to be a market-leading specialty firm. We decided we’re not going to be everything to everyone.”
“Everything” would appear to include “employer.” Let’s hear about the firm’s headcount cuts — affecting partners, associates, and staff — and check out the severance agreement that one source leaked to us….
* Noah “Kai” Newkirk, the protestor who disrupted Supreme Court arguments in February, was sentenced to time served and barred from the court. Don’t worry, we’ll get you all the SCOTUS clerk news you need, cutie. [Associated Press]
* “There are still a lot of firms out there hoping the good old days are going to return, and are finally coming to the realization that that isn’t going to happen.” More on Biglaw layoffs. [Am Law Daily]
* Yet another law school gets its rating downgraded by Moody’s. As a standalone school with “substantial declines in JD enrollment,” Vermont Law’s outlook is now negative. Sad trombone. [Moody's]
* “Is the Tax Code really 70,000 pages long?” No, not really. We wonder who started the rumor that it was so long, because in reality, it’s only about 2,600 pages long — which is still way, way too long. [Slate]
* It appears that the apple doesn’t fall too far from the tree with this celebrity family. Lindsay Lohan’s mother, Dina Lohan, pleaded guilty yesterday to drunken driving and speeding charges in New York. [CNN]
Over the course of the past two months, we’ve been able to allow only one week to pass without the mention of a layoff or buyout of some sort, whether it be from a law firm or a law school.
These layoffs haven’t affected only handfuls of people — with about 20 people here, and more than 50 people there, hordes of law firm and law school personnel have been thrust into the unemployment line in recent weeks. Today, we’ve got word on yet another double-digit law firm layoff, this time coming amid the “surreptitious firing” of associates and the defection of several partners.
Which firm is the source of this unfortunate action?
For months, if not years now, the Biglaw buzzword of choice has been “rightsizing.” The practice has infiltrated all sectors of the legal profession, even law schools. Pushing aside all the flowery BS explanations, we know what that phrase really means. There’s not enough money to go around, and whatever is left isn’t worth spending on you.
This week, yet another law firm decided that some of its employees were more expendable than others, conducting a double-digit layoff.
Throughout the past few weeks, several law schools have been hit hard by the realities of the market for legal education — there have been faculty layoffs and buyouts galore. We suppose this is what happens when people stop applying to law school in droves. Rather than offsetting the financial losses by charging higher tuition, most schools are “rightsizing” themselves by cutting faculty positions they deem unnecessary, a big blow to those ivory-tower elites who believed their jobs were secure.
But because nothing in the legal profession is very secure anymore, today we’ve got news of layoffs from a public law school facing major budgetary issues thanks to a gigantic funding gap across the entire university system.
Which law school could it be? Keep reading to find out…
As we noted earlier today, the legal sector has added 2,300 jobs since the start of 2014. For an industry that currently employs more than 1.1 million people, 2,300 new jobs doesn’t sound like a lot — but hey, it’s better than shedding jobs.
Note that we’re talking about net job growth. Some legal employers are hiring, while others are firing.
Which major law firm just laid off a total of 52 lawyers and staffers last week?
Trade-ins happen all the time. Texas lawyers trade in their Lexuses (Lexi?) for newer models. Law firm partners trade in their wives for newer models too.
Today’s Biglaw layoff story involves a trade-in of sorts. A prominent law firm restructured its IT department, resulting in double-digit departures. But then the firm turned around and posted some of those positions to a job board.
Tenured or not, members of the ivory tower used to feel like they had reached a point in their legal careers where they had a good amount of job security. That was before the recession. Now, it seems they’re ready to poop their pedagogical pantaloons at a moment’s notice for fear of layoffs.
Well, we hope the professors at the law school we’re about to tell you about have a change of pants, because the dean thinks it’s time to flush out some faculty members. There aren’t any buyouts to be had — we’re talking straight-up law prof layoffs.
Which school is decimating its law professor headcount this time?
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 (Robert Kinney and Evan Jowers will be in Hong Kong again March 15 to 23), 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.
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Everyone is talking about the importance of Social Media in Corporate America. But it is relatively safe to say that most law firms and lawyers are slightly behind the social curve. Most lawyers, at minimum, use LinkedIn, for networking. Some even use Twitter for pushing out short, pithy content, while many have Blogs, where they write their little hearts out. The adage “it is better to give than to receive” is not always true though in the world of Social. In the Social World – it is best to listen, give back and engage.
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