(Image via Getty)
With each new day comes another Biglaw firm that’s trying to tread water amid the coronavirus crisis that threatens to drown the legal industry as we know it.
Today, we have news on yet another Biglaw firm that’s taking steps to make sure it doesn’t have to resort to furloughs and layoffs further down the line. Fragomen, with $637,286,000 in gross revenue in 2018, found itself at #62 in the latest Am Law 100 rankings, but that isn’t stopping the firm from instituting numerous cost-cutting measures.
Filevine’s New Legal AI Platform LOIS Turns AI Into A True Legal Coworker
Legal work isn’t slowing down, and the firms that win won’t be the ones working harder — they’ll be the ones working smarter.
In a memo sent yesterday that was addressed to employees worldwide (available in full on the next page), the firm’s executive committee noted that there will be salary reductions for all partners and senior, C-suite corporate leaders, effective May 1. The extent of those cuts was not published. In addition to the firm’s partner pay decision, employees discovered that they will not receive bonuses or salary increases in 2020. Decisions on pay raises and bonuses will be deferred until the end of the year, and any raises will not be effective until 2021. The firm has suspended its 401(k) matching program. The members of Fragomen’s executive committee say they’re taking these steps to avoid widespread furloughs and layoffs — but don’t get too comfortable, because furloughs and layoffs may still be necessary in the future.
We reached out to Fragomen for comment, but have yet to hear back.
(Flip to the next page to read Fragomen’s memo in full.)
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).
AI Is Reshaping Legal Practice—But Tools Aren’t The Real Differentiator.
Explore the mindset, cultural shifts, and training strategies that define the AI‑savvy lawyer, revealing why human judgment, standardized competence, and integrated learning—not technology alone—will shape the future of the profession.
If you’d like to sign up for ATL’s Layoff Alerts, please scroll down and enter your email address in the box below this post. If you previously signed up for the layoff alerts, you don’t need to do anything. You’ll receive an email notification within minutes of each layoff, salary cut, or furlough announcement that we publish.
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.