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]
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.
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 seven years. You can reach them by email: email@example.com.
It’s that time of year again when JDs are starting to apply for 2L summer jobs and 2L summers are deciding which practice area to focus on.
For those JDs with an interest in potentially lateraling to or transferring to Asia in the future, please feel free to reach out to Kinney for advice on firm choices, interviewing and practice choices, relating to future marketability in Asia, or for a general discussion on your particular Asia markets of interest. This is of course a free of cost service for those who some years in the future may be our future industry contacts or perhaps even clients.
For some years now Kinney’s Asia head, Evan Jowers, has been formally advising Harvard Law students with such questions, as the Asia expert in Harvard Law’s “Ask The Experts Market Program” each summer and fall, with podcasts and scheduled phone calls. This has been an enjoyable and productive experience for all involved.
If you are considering a virtual law practice, you know that many of today’s solo firms started that way. But why are established, multi-attorney law firms going virtual?
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:
Reduces malpractice risk
Enables you to gather the best attorneys to fit the firm, regardless of each person’s geographic location
Leverages mobile devices and cloud technology to enable on-the-spot client and prospect communication
Transitioning in-house is something many (if not most) firm lawyers find themselves considering at some point. For many, it’s the first step in their career that isn’t simply a function of picking the best option available based on a ranking system.
Unknown territory feels high-risk, and can have the effect of steering many of us towards the well-greased channels into large, established companies.
For those who may be open to something more entrepreneurial, there is far less information available. No recruiter is calling every week with offers and details.
In sponsorship with Betterment, ATL and David Lat will moderate a panel about life in-house and we’ll hear from GCs at Birchbox, Gawker Media, Squarespace, Bonobos, and Betterment. Drinks, snacks, networking, and a great time guaranteed. Invite your colleagues, but RSVP fast, as space is limited.