Layoffs

Nationwide Layoff Watch: Another Biglaw Firm Kicks Associates To The Curb

For the third time in as many months, a Biglaw firm is cutting attorneys from its ranks.

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layoffsFor the third time in as many months, a Biglaw firm is cutting attorneys from its ranks. First it was Reed Smith, then came Baker Donelson, and now Schiff Hardin — we warned you that more Biglaw layoffs were coming.

Schiff Hardin has been having a tumultuous year. In January, 22 Schiff Hardin partners — including the firm’s former managing partner, practice group leaders, and an executive committee member — left the firm to start their own, and it seems that move has continued to have repercussions on the firm.

Eleven associates are now looking for new jobs (seven current first-year associates, and four who were slated to begin at the firm this spring), victims of what the firm is calling a “realignment” caused by the partner exodus. An undisclosed number of support staff have also been let go. The firm notes they “are providing all departing lawyers and staff with severance pay and professional career transition services and counseling.” So at least there is that.

Tipsters have complained about the lack of transparency in the process, saying, “nobody knows what’s going on yet it seems,” and that there is “[l]ots of speculation.” It isn’t hard to imagine why there’d be confusion — earlier this month American Lawyer was crowing about the double-digit growth for the firm. And managing partner, Marci Eisenstein noted, “2015 was an excellent year for Schiff Hardin.” Those aren’t the financial reports that tend to make associates nervous.

But I guess in order to keep hitting those financial goals, Schiff Hardin has to be a lean, mean, litigating machine.

For the rest of you Biglaw associates, reading this with barely suppressed glee: be careful out there. Because one is an example, two is a coincidence, and three’s a trend.

Read the full statement from the firm below.

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From Marci Eisenstein, Managing Partner, Schiff Hardin LLP

Schiff Hardin is 15 % smaller today than it was at the start of 2016. By any measure, this is not an ordinary circumstance and so it was necessary for the firm to develop and implement a plan that realigns our personnel with business realities and with our current and anticipated client demands.

The realignment impacted seven of our current lawyers, primarily first-year associates, plus four associates who were set to join the firm this spring. Some support staff will also be leaving; some worked for lawyers who have left the firm and therefore there is no work for them.  Other staff are leaving because we must re-size our staff to align with our current business needs.

Without question, our people are our most valued asset.  While our actions are necessary, they are certainly difficult.  All who are leaving have served the firm and its clients with dedication and have contributed to our success. We are providing all departing lawyers and staff with severance pay and professional career transition services and counseling.

Schiff Hardin is coming off a record year. Going forward we are focusing on several key practice areas such as IP, product liability, corporate finance, and environmental, and on our profitability, an effort which began last year and is ongoing.  As always, we continue to bring top lateral talent to our firm.  Schiff Hardin’s exceptional client service, financial stability, well-balanced platform, and culture of collegiality and collaboration enable us to move forward with confidence and we anticipate another strong year in 2016.

The Am Law 100: Schiff Hardin Posts Double-Digit Growth [American Lawyer]
UPDATED: Exodus of 22 Partners Hits Schiff Hardin [Bloomberg / Big Law Business]

Earlier: Nationwide Layoff Watch: Biglaw Firm Cuts Headcount; Attorneys Among The Victims
Attorney Layoffs Hit Well-Liked Biglaw Firm
Nationwide Layoff Watch: Beware, More Layoffs Are Coming

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