Not Satisfied With Layoffs, Am Law 200 Firm Cuts Partner Draws And Kills Retirement Match

More bad news from this Biglaw firm.

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Biglaw firms continue to cut costs wherever they can in the wake of the coronavirus crisis to keep their firms afloat. Some firms thought that layoffs would suffice, but even that wasn’t enough, and they now find themselves making additional cuts — this time to partner draws and benefit programs.

You may remember that last month, Goldberg Segalla conducted staff layoffs “in large numbers,” according to our sources. Apparently that wasn’t enough, and now, the firm has turned its eyes to partner draws and benefits. We’ve been told that Goldberg Segalla will be reducing its biweekly partner draws by 10 to 20 percent, effective with the May 8 payroll. Sources also say that the firm has terminated its 401(k) matching program.

We reached out to the firm for confirmation, and this is what a spokesperson told us:

The reduction in draw does not reflect a decision with respect to overall compensation. In addition, the firm will be suspending the 401(k) match for a period of time. These are temporary measures we expect to institute in the short-term while operating in the COVID-19 environment.

Let’s hope Goldberg Segalla can save jobs through these additional reductions.

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 ZaretskyStaci 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.

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