In the dark days of 2009, we had frequent occasion to discuss the difference between “layoffs” and “performance-based dismissals.” Layoffs are generally understood as economically motivated, large-scale reductions in headcount, while performance-based dismissals involve specific individuals being asked to leave for cause. (Some see this as the difference being getting laid-off versus getting fired, although I’ve sometimes heard layoffs referred to as firings.)
The distinction can be a fine one. Unless cuts are made based on factors like seniority or practice area, layoffs often target weaker performers, so they can look a lot like performance-based terminations. There’s no bright-line cutoff, in numerical terms, for what constitutes a round of layoffs. And you can’t let firm characterization control, since many firms find it in their reputational interest to deny layoffs (unless the cuts are so large as to be undeniable; see, e.g., last week’s Weil Gotshal layoffs).
Today we bring you a story that captures this ambiguity. Several lawyers and staffers, totaling a number believed to be in the double digits, have been asked to leave a firm — but the firm denies that it’s conducting “layoffs.” We’ll present the facts and let you be the judge….
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….
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….
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….
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….
On yesterday’s post about layoffs at a major international law firm, one of my favorite commenters, “Successful Troll,” took note of our stock photo for such stories: “I feel sorry for the pretty blond woman in the picture. It seems she keeps going from firm to firm being laid off — probably 20 times already this year.”
It was funny, but also depressing. How much longer can layoffs, especially staff layoffs and “stealth” layoffs of lawyers, go on? Who is left to be laid off? Where are laid-off employees of law firms supposed to look for new jobs, in an environment in which it seems that all firms, including some very elite ones, are cutting headcount?
For now, these questions remain unanswered. Today we have more layoff news for you….
While summer associates are present, certain subjects are off-limits. Don’t talk about that group of partners with a huge book of business that’s going to defect any day now. Don’t talk about that salacious lawsuit against the firm that’s still pending.
And don’t talk about layoffs — of staffers or lawyers or both. Reductions are such a buzzkill….
Mammas, don’t let your babies grow up to be legal secretaries. We’re hearing scattered and somewhat hard-to-confirm reports of lawyer layoffs at various firms — please email us or text us (646-820-8477) if you have news to share — but efforts to reduce the ranks of secretaries are open and notorious.
If you spin through our staff layoff coverage, you’ll see that numerous law firms have shrunk the size of their secretarial staffs. Some firms have done this the hard way, through layoffs, while others have taken the kinder and gentler route, through buyouts.
Today we can report that two leading law firms have jumped on the “voluntary separation” bandwagon. If you’re a recently displaced legal assistant looking for a new position, don’t bother applying to either of these places — one of which is shedding lawyers, too….
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.
Are you challenged by the costs and logistics of maintaining your office, distracting you from the practice of law?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
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.
Social Media is a communications tool that can deeply educate you about the needs and wants of your clients and prospects when used in conjunction social media monitoring and sharing tools.
Take this quick quiz and see if you know how to use Social to help you engage more with your clients or to better service the ones you have.