In early July, we broke the news that Cooley Law School would stop accepting first-year students at its Ann Arbor campus and would begin conducting faculty and staff layoffs due to continuing declines in both enrollment and revenue. At the time, the school had “no plans” to completely close the campus.
At the end of July, however, Cooley Law notified its Ann Arbor students there may be a “possible consolidation” of that campus with other Cooley campuses, three of which exist in Michigan.
It’s now mid-August, and the foreboding promise of layoffs has finally come to fruition. How many heads will roll thanks to this law school’s “right-sizing” plan? Our sources say the damage is “massive”…
For some reason, very few law firms are prepared to deal with the headcount issues. It is interesting because the reaction from them also is peculiar. I think it was reported—I don’t know, maybe 12 months ago—that Weil Gotshal had a significant layoff of lawyers. They reduced—I think it was their associates, but maybe it was of counsel as well—and there was quite a negative reaction in the press to that.
I am not privy to any of their numbers or anything that is going on in the firm, but, as a restructuring person, my reaction is, “Look, this is someone getting their house in order. This is an appropriate thing to do.” It is no secret that revenues across the industry are down. And, so, you either need to take market share, or you need to right size your organization.
The arrival of summer associates brings good news for the permanent lawyers and staff of Biglaw. Not only do summer associates infuse their firms with youth and beauty (and opportunities for free lunches), but they serve as an amulet of protection against the layoff spirits.
But for those folks lucky enough to land summer associate positions, the odds remain high that they will get offers (unless they misbehave). And firms want those offers to be accepted, so they try to present themselves to summer associates as shiny happy workplaces. Layoffs, whether of lawyers or staff, are kind of a buzzkill. Firms prefer to conduct them before or after their summer programs.
So perhaps this latest news will be our last layoff reporting for a while. Which firm just made double-digit cuts to its ranks?
We’re midway through Biglaw’s second quarter, and this will be the third week in a row we’re covering law firm layoffs or buyouts of some variety. This just goes to show that no matter how well a firm does, it’s always looking to do better, and the easiest way to do so is by managing human expenses.
Sometimes the firms attempting to trim their ranks are members of the “Super Rich,” with high revenues per lawyer (at least $1 million) and even higher profits per partner (at least $2 million). Other times, these firms are rich but not super-rich — firms that generally saw “modest, hard-won gains” last year, according to the American Lawyer.
The firm we’re writing about today falls into the latter group, with relatively small financial gains in 2013. Despite this, it’s still offering “very generous” packages to inspire employees to walk away….
It was just last week we were informed that the firms designated as “super rich” among all other Biglaw firms — specifically, the 20 with profits per partner of $2 million or more and revenue per lawyer of $1 million or more — were only getting richer.
That being the case, we can’t imagine that these Biglaw titans are hurting for cash, especially when the chasm between the super rich and everyone else keeps growing wider and wider.
This is why we were shocked to find out that the top-tier law firm recently revered for having the best brand in the business was trying to trim its ranks with offers of buyout packages…
The first quarter of 2014 was relatively good for large law firms. But that hasn’t stopped major firms from trimming their ranks. In fact, some of the strong performance in the first quarter appears to be attributable to prudent management of expenses — including employee compensation.
This week brings word of still more layoffs. The latest reduction is sizable, affecting about 40 employees.
Which firm is making the cuts, and what is the mix between lawyers and staffers?
This week has been a big one for rankings. On Monday, the American Lawyer released the 2014 Am Law 100 rankings, chronicling how Biglaw fared in 2013. Last night, we released our top 50 law school rankings, based on the latest employment data from the ABA.
The process of getting measured causes people to modify themselves toward the metric; just ask any bride trying to fit into her wedding dress. So it shouldn’t be surprising that, with rankings on the brain, law firm leaders have been cutting headcount to boost profits.
Which major law firm just announced double-digit cuts, perhaps in an effort to get into fighting shape by Memorial Day, before the arrival of summer associates?
* 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]
As part of a nationwide tour, Above the Law is coming to the great city of Chicago.
Join preeminent law firm management consultant Bruce MacEwen, Katten Muchin Chicago managing partner Gil Sofer, and JPMorgan Chase & Co. assistant general counsel Jason Shaffer for a panel discussion (sponsored by Pangea3) on the evolutionary and market forces bearing down on the law firm business model. Come on by Thursday, November 20, at 6 p.m., for thought-provoking discussion, food, drink, and networking.
Space is limited and there will be no on-site registration, so please RSVP
Average law school debt for graduates of private universities hovered around $122,000 last year. With only 57% of new attorneys actually obtaining real lawyer jobs, recent graduates have a lot to consider when it comes to managing their student loan payments. Thanks to our friends at SoFi, today’s infographic takes a look at student loan debt, including the possible benefits of refinancing for JDs…
Kinney Recruiting’sEvan Jowers is currently in Hong Kong for client meetings and still has a few slots available through October 22. Evan will also be in Hong Kong November 14 to December 15. Further, Robert Kinney has been in Frankfurt and Munich this week and is available for meetings with our Germany based readers.
One of our key law firm clients has referred us to one of their important clients in the US, Europe and China – a leading global technology supplier for the auto industry – in order to handle their search for a new Asia General Counsel and Asia Chief Compliance Officer.
Kinney is exclusively handling this in-house search.
This position will have a lot of responsibility and include supervision of eight attorneys underneath them in the Asia in-house team. The new hire will report directly to the global general counsel and global chief compliance officer, who is based in the US. The new hire’s ability to make judgement calls is going to be as important as their technical skill set background.
The position is based in Shanghai and will deal with the company’s operations all over Asia and also in India, including frequent acquisitions in the region.
It is expected that the new hire will come from a top US firm’s Shanghai, Beijing or Hong Kong offices, currently in a top flight corporate practice at the senior associate, counsel or partner level. Of course, the candidate can be currently in a relevant in-house role.