Despite A Billion Dollars In Gross Revenue, Squire Patton Boggs Cuts Salaries Amid COVID-19 Austerity Measures
No one is safe from COVID-19 austerity measures.
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2019 was a good year for Squire Patton Boggs. The firm brought in $1,035,000,000 in gross revenue last year, but that won’t stop the COVID-19 austerity measures sweeping Biglaw.
Today the firm announced a 20 percent salary cut for all associates, though the existing bonus program will not be impacted by the cuts. Staff will see a range of cuts, between 10 and 20 percent, depending on salary. Additionally, underutilized or staff unable to perform their job remotely will be furloughed. Partner distributions will also be adjusted, and the firm says the partnership will shoulder the largest financial burden.
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The summer program is also being impacted. The 2020 US Summer Associate Program is cut and those that were scheduled to work at the firm will receive a stipend and an offer for future employment (2Ls will get full time job offers, 1Ls will be offered to join the 2021 summer program). And the soon-to-be-graduates of the class of 2020, set to start at the U.S. offices of the firm in September, will have their start day pushed back until January 2021. (The firm expects U.K. trainees to start in August as scheduled.)
The firm had the following statement on the cuts:
“The global pandemic has created distress for companies around the world and will continue to for some time. As responsible stewards of the firm and consistent with measures taken by other law firms, it is necessary to take prudent steps to assure the firm’s success and prevent job loss over the long term.”
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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Kathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).
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