Biglaw

Megafirm Slashes Salaries Firmwide, Furloughing Some And Laying Off Others

The firm's austerity measures continue.

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FAEGRE DRINKER — STATEMENT RE: SALARY CUTS, FURLOUGHS, LAYOFFS

Faegre Drinker has taken steps to address the impact of the COVID-19 pandemic while ensuring we have the necessary tools and resources to guide clients through today’s uncertain business environment. We are also continuing planned integration work arising from our February 1 combination, which predates the emergence of the coronavirus pandemic.

In response to the uncertainty caused by COVID-19, Faegre Drinker’s partners led in absorbing the impact of the economic downturn by deferring a portion of distributions beginning on April 1. Following an internal announcement in mid-April, the firm also implemented a temporary, firmwide reduction in pay of 15% for other lawyers effective May 1. Professional consultant and staff pay has been reduced on a variable, compensation-based schedule, with no reductions for staff or consultants earning less than $50,000 graduating up to a 15% reduction for the most senior employees effective May 1. Faegre Drinker has also temporarily furloughed less than 1.5% of firm personnel, many of whom have responsibilities which are primarily office-based. Furloughed employees are maintaining firm benefits during the furlough period and also have access to state and federal benefits programs.

The firm has deferred the start of its summer associate program to no earlier than July 6, 2020 and is evaluating the program’s format. The firm also anticipates deferring the start date for the fall associate class, though it is still considering options.

Separately, Faegre Drinker’s leadership team has continued to advance a variety of combination-related integrations and synergies following the firm’s February 1, 2020 merger. Faegre Drinker completed the planned elimination of a small number of redundant staff positions created by the merger, representing 1.5% of total headcount, and continues to unify firm policies and procedures to realize combination-related efficiencies. Employees whose positions were eliminated due to the combination were provided with enhanced severance packages.

These decisions are not easy or made lightly. Faegre Drinker cares deeply for our colleagues and is committed to supporting those whose roles have been temporarily furloughed due to the COVID-19 pandemic, as well as those whose roles were eliminated as a result of the firm’s combination. We are grateful for the incredible flexibility, resilience and collaboration shown by our Faegre Drinker family as we manage through these unprecedented circumstances.

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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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