Reed Smith Merger Talks Fuel Discontent At Firm

If the powers that be at Reed Smith were hoping a potential merger with Pepper Hamilton would be greeted with excitement and as a course change, a cure for the low morale attorney layoffs and lateral losses they’ve experienced earlier this year, it seems they were mistaken. The response from tipsters embedded at Reed Smith has not been positive.

We got word from a partner there criticizing the way the powers that be handled the news of the merger:

I work at Reed Smith and was embarrassed to hear this news for the first time today from a friend at another firm. I looked foolish having no idea what he was talking about as he pulled up his phone to show me the Law360 article. I know it’s early stage, but a heads up at our partner retreat two weeks ago would have been nice.

I cannot imagine the partnership was excited to learn about the merger from sources outside of their firm. I guess this partner knows now how little Reed Smith thinks of them.

The discontent over the merger is not contained to a single office either. We’ve had reports from multiple Reed Smith locations, and it isn’t going over well anywhere. One source reports:

So far the merger has led to bickering in the hallway. Morale has taken another nosedive.

The lack of substantive information from leadership at the firm has led to rampant speculation from the rank and file:

I mean the partners are happy cuz they can avoid bringing in business again, just buy someone else’s. The associates are just like great, dust résumé off.

Dusting off your résumé is not a terrible idea. Many, including the Legal Intelligencer, have surmised there may not be room for everyone at a combined firm:

And in a time when firms are looking to deal with overcapacity issues, as evidenced by Reed Smith’s layoffs earlier this year of 45 lawyers, the merger may be a vehicle for both firms to cut underutilized partners under the guise of them not fitting into a combined firm’s strategic vision, one ­person familiar with both firms said.

While people are busy worrying about whether or not they even have a job, they aren’t out there, billing their best selves.

Reed Smith And Pepper Hamilton Discussing A Merger [Law360]
Will Reed Smith-Pepper Hamilton Merger Leave Some Behind? [Legal Intelligencer]
Reed Smith – Merger No Way to Improve Morale (Productivity could be off at Pepper Hamilton, too) [Law and More]

Earlier: Can A Merger Move Improve Morale At Reed Smith?
Nationwide Layoff Watch: Biglaw Firm Cuts Headcount; Attorneys Among The Victims
More Shake-Ups At Reed Smith
Associates Challenge Biglaw Management — We Have The Memo!

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Kathryn Rubino is an editor at Above the Law. Feel free to email her with any tips, questions, or comments. Follow her on Twitter (@Kathryn1).