Earlier this year, K&L Gates generated some (generally positive) press by issuing an unusually detailed disclosure of its firm financials. The report reflected a reassuringly conservative financial position, with zero bank debt and limited retirement-plan obligations (a trouble spot for many other law firms).
It looks like K&L Gates is keeping to its conservatism. It’s trimming its headcount in D.C. and Seattle, presumably to reduce expenses….
Very few people work in Biglaw for the thrill of being surrounded by lawyers. Nor are Biglaw refugees heard lamenting, on the odd chance they are lamenting leaving Biglaw at all, the fact that they are no longer surrounded by fellow attorneys. What do they miss, if anything? The money.
Biglaw refugees are not the only ones stirred by the thought of Biglaw’s outsized profits. Those profits are the nectar that draws the droves of worker-bee law students into the welcoming embrace of law schools. And the gruel that sustains the overworked bodies and minds of Biglaw’s associates and junior partners as they slave in the mineshafts hoping for their day in the sun. Biglaw’s millions are also the elixir that lubricates the arthritic joints of senior partners who insist on staying in their positions of power well past the expiration dates that their forebears adhered to. More than ever, it is about the money….
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….
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….
Sorry, folks — we couldn’t make it two full weeks without a story about law firm layoffs. We continue to hear reports about them, which we publish as we get sufficient corroboration for each one. If you have information to share, please email us or text us (646-820-8477; texts only, not a voice line).
Thus far, layoffs have hit support staff the hardest. Junior staffers often bear the brunt, since some of the layoffs are seniority-based.
But senior people, including law firm management, are not immune to the cuts. One law firm recently laid off two executives, along with about twenty staffers…
We’ve got some sad news today out of Philadelphia, where Julia Law, a young paralegal, was found dead in her employer’s bathtub. That may seem odd, but as it turns out, Law had been dating her boss, well-known defense attorney A. Charles Peruto Jr., for a month or two, and she had a key to his condo.
Law was supposed to be celebrating her 27th birthday today, but instead, we’re awaiting her autopsy results. Law was reportedly texting with coworkers until 1 a.m. on the day of her death, lamenting the lack of “scented bubble bath” at Peruto’s home. That was apparently enough to invoke police suspicion.
At this time, the cause of Law’s death is unknown, but some observers wonder if the beautiful young woman may have been murdered….
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….
If your firm is in ‘go’ mode when it comes to recruiting lateral partners with loyal clients, then take this quiz to see how well you measure up. Keep track of your ‘yes’ and ‘no’ responses.
1. Does your firm have a clearly defined strategy of practice groups that are priorities of growth for your office? Nothing gets done by random chance, but with a clear vision for the future. Identify the top practice areas for which you wish to add lateral partners. Seek input from practice group leaders and get specifics on needs, outcomes, and ideal target profiles.
2. In addition to clarifying your firm’s growth strategy, are you still open to the hire of a partner outside of your plan? I’ve made several placements that fit this category. The partner’s practice was not within the strategic growth plan of my client, but once the two parties started talking with each other, we all saw how it could indeed be a seamless fit. Be open to “Opportunistic Hires.” You never know where your next producing partner might come from, so you have to be open to it. I will be the first to admit that there is a quirky element of randomness in recruiting.
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@example.com.
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