Stealth Layoffs

One Liberty Plaza: a tower of dark secrets?

It’s official: Cleary Gottlieb is no longer boring. The elite and esteemed firm is now exciting as well.

In the past few months, Cleary has generated enough drama to fuel a law firm soap opera — think “All My Associates” or “The Biglaw and the Beautiful” (on second thought, save the latter title for Davis Polk). Cleary has witnessed a mysterious partner departure, support staff vanishing into the ether, and a summer associate dismissed due to his disturbing past.

Yesterday, the drama at One Liberty Plaza continued. A terminated employee rose from the cyber-grave to haunt the living — before he was electronically exorcised by the powers-that-be….

double red triangle arrows Continue reading “Summer Drama At Cleary Gottlieb”

No change to spare for Quinn Emanuel associates.

Earlier this month, when we wrote about Cahill Gordon’s summer bonuses, we floated a question about mid-year bonuses at other firms. Specifically, we wondered if Quinn Emanuel, a top-flight litigation shop that paid such bonuses last year, would do so again.

After hearing rumors of no mid-year bonuses at QE, we reached out to the firm for comment. Founding partner John Quinn confirmed the reports, correctly noting that the market has not paid spring or summer bonuses this year.

John Quinn also denied various other rumors about Quinn Emanuel, to which we now turn….

double red triangle arrows Continue reading “Associate Bonus Watch: No Mid-Year Bonuses at Quinn Emanuel (Plus Other QE Rumors)”

Last week, we wrote about reductions to the ranks of lawyers and staff at WilmerHale. We noted that the cuts, made in connection with twice-annual performance reviews, seemed to focus on IP litigation and on the Boston and Palo Alto offices.

Today we bring you additional information about the reductions, which look a lot like stealth layoffs. They seem to be more widespread, in terms of offices and practice areas, than previously reported.

And they might be due to some earlier overhiring, reflected in an interesting email we received….

double red triangle arrows Continue reading “Nationwide Layoff Watch: More WilmerHale Detail”

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….

double red triangle arrows Continue reading “Nationwide Layoff Watch: Layoffs? What Layoffs?”

Ed. note: This is a new series from Bruce MacEwen and Janet Stanton of Adam Smith Esq. and JDMatch. “Across the Desk” will take a thoughtful look at recruiting, career paths, professional development, human capital, and related issues. Some of these pieces have previously appeared, in slightly different form, on AdamSmithEsq.com.

Adam Smith, Esq. isn’t in the business of covering — or typically even commenting on — late-breaking news, but there’s news and then there’s news.

And the Weil layoffs were reported above the fold on the front page of the Wall Street Journal and as the lead story for much of the day in The New York Times‘ estimable “DealBook.”

To the affected associates and staff: Nothing comforting or reassuring can be said — this is dreadful, awful, horrible, bad bad news for you — but if you can gain perspective after awhile, remember that in America it’s no sin to be knocked down; the sin is not getting right back up.

double red triangle arrows Continue reading “From Across the Desk: The Weil Layoffs”

This year has seen a grim procession of law firm layoff news, which seemed to pick up momentum just yesterday with the Weil Gotshal lawyer layoffs and the Jones Day staff cuts. Are we looking at a 2008 redux, or is this just a bump in the road as the economy makes its slow recovery?

The Weil news was particularly stunning. If any firm seemed poised to thrive in the post-recession “new normal,” it was Weil, with its diversified practices and hegemonic restructuring group. Alas, with yesterday’s news of Weil’s decision to cut 7% of its associates and slash annual compensation for 10% of its partners by hundreds of thousands of dollars, it is clear that Biglaw job security is a thing of the past.

Let’s explore the reasons behind law firm layoffs, review a chronology of recent reductions, and obtain your views through a reader survey….

double red triangle arrows Continue reading “Are The Weil Layoffs The Start Of A Biglaw Trend?”

Summer associates will soon be arriving at large law firms. So, to paraphrase Antoine Dodson, y’all need to hide yo screamers, hide yo sleazebags, and hide yo husband (or yo gun-toting boyfriend).

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….

double red triangle arrows Continue reading “Nationwide Layoff Watch: Magic Circle Firm Makes Lawyers and Staff Disappear”

Many fine things can be said about Cleary Gottlieb. It’s prestigious (#8 in the latest Vault rankings). It’s profitable (#10 in the recently released Am Law 100 profit-per-partner rankings). It’s pleasant, known for a nice firm culture.

So what are the downsides of Cleary? Here’s one: the firm might be a bit… boring.

As you can see from our archives, we don’t write that much about Cleary. And when we do, it’s not always exciting stuff — e.g., Cravath-matching bonunses. Yawn.

Well, today we bring you some news about Cleary that might be at least slightly juicy: a mysterious partner departure, and possible stealth layoffs….

UPDATE (2:30 p.m.): Now with an important update, a statement from the partner in question.

double red triangle arrows Continue reading “A Mysterious Partner Departure — Plus Stealth Layoffs? — at Cleary Gottlieb”

I asked, and once again the readership delivered. I thought it would be interesting to hear from former Biglaw associates who had been passed over for partnership, and I was happy to receive some thoughtful responses.

As you will see below, and as I discussed in my columns relating to making partner, there are very powerful personal forces at work in these situations. As much as we can learn from our own disappointments, so can we learn from the experiences of others, especially those who have forged ahead despite a setback.

Biglaw can be a brutal business. We need to pause and reflect on the human toll that working in this environment can take….

double red triangle arrows Continue reading “Buying In: Passed Over for Partner (Interview No. 1)”

Just $150K plus shipping and handling!

* The triple-dog dare: a technique employed to show off how just efficient American democracy is, or something that’s just so ridiculous it might work in the Senate when it comes to judicial filibusters for appeals court nominees. [New York Times]

* If the Supreme Court were to strike down Section 5 of the Voting Rights Act, the Obama administration has a plan in the works from the last time they thought the Supreme Court was going to strike down the very same section. [Huffington Post]

* It takes more than one legal memo to justify the killing of an American overseas — just ask the guys from the DOJ’s Office of Legal Counsel who rationalized the drone strike against Anwar al-Awlaki. [New York Times]

* Remember the Winston & Strawn stealth associate layoffs of 2012? Those weren’t layoffs, silly. They just left “because of reduced demand for junior lawyers.” Also, we have a bridge to sell you in Brooklyn. [Am Law Daily]

* If you’re not satisfied with your law degree after failing the bar exam, don’t worry, we’ve got a money-back guarantee. We’ll give you back 8.9% of your three-year tuition. It’s better than nothing! [National Law Journal]

* Meanwhile, if law school were only two years long instead of three, then perhaps a money-back guarantee would actually mean something. For now, it’s just one big public relations stunt. [Pittsburgh Post-Gazette]

* Joseph Kelner, plaintiffs’ attorney in the Kent State suit and lawyer for Bernie Goetz, RIP. [New York Times]

Page 1 of 212