Nationwide Layoff Watch: Sweeping Job Cuts For 'Superior Legal Minds'
How many attorneys were let go this time?
We’re barely three months into 2015, but one Biglaw firm just proved that it’s never too soon to lay off employees. It seems that Kasowitz Benson, fresh off a 14.6 percent increase in gross revenue in 2014 according to the American Lawyer, decided that it was time for an inordinate amount of heads to roll. March really does come in like a lion, especially in Biglaw.
According to our various sources, as many as 40 staff members, staff attorneys, and associates were let go yesterday. A “superior legal mind” is a terrible thing to waste. Our inbox began to fill with tips like these yesterday:
* I’m hearing that layoffs are happening at Kasowitz. Things have been crazy over there for a while, all kinds of rumors about Marc [Kasowitz], and then an entire department up and left for DLA. I’ve heard about 10 people including attorneys and staff (confirmed) and rumors that 30-40 will go.
* Lots more layoffs at Kasowitz today. About 40 people, staff attorneys, associates and staff. Right after announcing record profits and revenue.
* Massive layoffs today. Excuse given was the same as last year (which was almost a year ago to the day) — that they needed to trim down so they can have healthy revenues. F*cking assholes at that place have no conscience or souls. Next February/March we should expect the same round of layoffs.
* So after a week of them announcing 14% increase in PPP, they lay off 20-30 people. What a f*cking joke that place is.
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This is the second year in a row that Kasowitz has conducted layoffs en masse during the first quarter. Last February, the firm laid off around 30 individuals, from staff to partners, thanks to a slowdown in business. Kasowitz career casualties are an annual occurrence.
After receiving this round of tips, we immediately reached out to the firm for confirmation, as we do with all reports we receive about layoffs. Above the Law is a professionally run legal news website, and we follow standard journalistic practices. We waited — perhaps too patiently — for someone at Kasowitz Benson to respond to our media inquiry before publishing the news about its latest round of layoffs, only to later discover that the firm had decided to blow us off and talk to other media outlets instead. In fact, as of the time of publication of this post, we’ve yet to receive a response from the firm.
Something like this happening is quite rare for us here at Above the Law. When we politely reach out to law firms before publishing negative information about their businesses, we at least expect the courtesy of a response. It was the only reason we held off on publishing information about Kasowitz’s latest round of layoffs yesterday afternoon. After all, we hadn’t received a document memorializing the layoffs from any of our tipsters yet.
We’ll take this time to remind law firms that if they ignore us — and disrespect our audience — they do so at their own peril. Don’t let this happen again.
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With respect to the latest Kasowitz layoffs, a firm-wide memo that we obtained from a source relayed the following information (the memo can be read in full on the next page):
We will be reducing attorney and staff head count in certain areas today. Impacted attorneys and staff members were informed of these actions this morning. We are providing each with severance benefits and making career counseling services available.
Today’s reduction is necessary to position the firm to continue to thrive. Although we had a successful 2014, we recognize that there are challenges in this market and that expenses and staffing have to be managed in order for us to meet our clients’ needs and to remain profitable.
In an interview Marc Kasowitz deigned to give to Bloomberg BNA’s Big Law Business, he would not confirm or deny the number of employees who were laid off, but had this to say:
“We had a strong year last year, and we’re looking at markets for litigation that are volatile and unpredictable,” he said. “We’re trying to plan smartly for the future. I think that’s the most accurate way to sum up our thinking of this.”
Planning smartly for the future at Kasowitz means many lawyers won’t be able to do the same — it’s hard to do things like that when you’re unemployed. At least those who were let go can take heart in the fact that the firm’s MP thinks they’re “first-class professionals.”
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We wish those affected at Kasowitz Benson the best of luck while they seek new jobs.
If your firm is reducing the ranks of its lawyers or staff, whether through open layoffs or stealth layoffs or voluntary buyouts, please don’t hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive — we’ll never ignore you. You can email us or text us (646-820-8477). Thank you very much!
(Flip to the next page to see the full memo about these layoffs from Marc Kasowitz.)
