Biglaw, Layoffs

Nationwide Layoff Watch: Biglaw Firm Hands Out 100+ Pink Slips

Which firm would do such a thing in the middle of summer associate season?

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The sun is shining, the weather is warm, and summer associates have descended upon Biglaw firms in droves. You know what that means: it’s time for America’s largest law firms to be on their very best behavior when it comes to employee retention. After all, they don’t want to terrify the future members of their workforce by conducting layoffs during a time when they’re supposed to be spoon-feeding them glitz, glamour, and tales of supposed work/life balance.

Some firms, of course, just can’t help themselves. Take Weil Gotshal, for example. The firm laid off about 7 percent of its associates and 110 staff members in June 2013, leaving its summer associates shell-shocked. This time around, a law firm known for its expertise in labor and employment law decided that summer associate season would be the perfect time to hand out pink slips to more than 100 of its employees.

Which firm could it be? It’s none other than Littler Mendelson.

Back in January, we mentioned that Littler was planning to ship its staff members to Kansas City, Missouri, to form an administrative hub. At the time this was announced, the firm extended relocation offers to its entire fleet of support staff — all of them, across 33 separate administrative offices. We looked into our crystal ball and predicted that there would be layoffs, as members of Littler’s support staff were being “forced to choose between their locations and their livelihoods.”

Just six months later, we now know how many people refused to take Littler’s relocation offer, because the firm recently announced a mass layoff. How many staff members will be in misery because they didn’t want to go to Missouri? According to the California Worker Adjustment and Retraining Notification (WARN) website, the firm announced on April 29 that it would be laying off 113 employees – permanently. The affected staffers will be out of work as of July 1. (For what it’s worth, Littler complied with the 60-day notice required by the WARN Act. It would’ve added insult to injury if a firm that specializes in labor and employment law had screwed this up.)

Here’s a statement from the firm that was given to the San Francisco Business Times, which first reported on Littler Mendelson’s layoffs:

“As part of this move,” officials told [reporter Chris Rauber] Monday afternoon, “all impacted employees were offered the opportunity to relocate; however, not all employees accepted this offer.” The employer is required to provide WARN Act notices to those employees who elected not to relocate, Littler Mendelson said in its statement to the Business Times.

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To make up for this major round of layoffs, Littler expects to hire about 200 new people in the Kansas City area before the end of the year. According to the firm’s COO Robert Domingues, the new administrative center will open next month, and only 10 percent of its employees will have transferred from Littler’s other offices. Ouch.

Now that Littler has a low-cost, back-office business operation, we wonder how much money it’ll stand to save by slashing and consolidating its human expenses. The San Francisco-based firm took in $543.5 million in gross revenue in 2014, and $515,000 in profits per partner, placing it in 62nd place in the latest Am Law 100 rankings. We suppose we’ll have to wait and see the results of next year’s Biglaw rankings to find out how helpful these staffing moves were.

We sincerely wish the legal professionals affected by layoffs at Littler Mendelson the best of luck while they seek new employment opportunities.

If your firm or organization is reducing the ranks of its lawyers or staff, whether through open layoffs, 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!

San Francisco law firm to lay off 113 [San Francisco Business Times]
Littler Mendelson will hire hundreds, open KC office by July [Kansas City Business Journal]
Littler is hiring for new Kansas City admin center as it lays off 113 staffers in San Francisco [ABA Journal]

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Earlier: As Firms Relocate Their Operations Hubs, Will There Be Layoffs?

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