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The coronavirus crisis continues to ravage the legal profession, be it through layoffs, benefits reductions, or salary cuts. We’ve already seen a Biglaw firm announce a 10 percent pay reduction for anyone making more than $100,000, but the latest salary cuts are quite the doozy in comparison.
According to multiple sources, Cadwalader, ranked #89 in the latest Am Law 100 and #52 in the latest Vault 100, announced a series of cost-cutting measures during a townhall meeting this morning. Specifically, for the next four months, the firm will be slashing associate compensation by 25 percent and staff compensation by 10 percent. On top of those cuts, partners and senior counsel will be making the most “significant financial sacrifice” of all. Here’s an excerpt from the firm’s memo on its shocking compensation adjustments:
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These salary reductions take place almost immediately. IMMEDIATELY. Yikes.
With no end to the COVID-19 pandemic in sight, law firms are clearly trying to find ways to quickly lessen their costs. On the bright side, although its employees’ wallets may be a little lighter in April, at least Cadwalader hasn’t decided to conduct layoffs.
If your firm or organization is slashing salaries, closing its doors, or 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. You can email us or text us (646-820-8477).
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Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.