Reports Of Another Biglaw Firm Engaged In Stealth Layoffs
Best wishes to anyone who suddenly finds themselves out of work during a pandemic.
Some associates at Snell & Wilmer have been let go from the firm. According to insiders, in an associate meeting, the firm characterized these terminations as performance based. But… when enough people are non-voluntarily exiting the firm that it gets folks talking, well, there’s a good chance there’s something deeper going on.
Of course, we’re talking about stealth layoffs. Biglaw is known for this particularly pernicious form of headcount management. If you’ve never heard of the phenomenon, consider yourself lucky. But the basic outline is that during economic downturns, firms will cut associates (that usually had good performance reviews until, coincidentally, the economy took a hit) all the while calling them performance-based cuts. These stealth layoffs allow firms to cut headcount without confirming that there were economic-based layoffs. Rather than signal some perceived weakness, a firm tries to cut overhead without making a splash. So, they’ll give the associates X number of months/weeks to find a new job and the firm may even couch the reductions in performance review terms, making those let go doubt their lawyering skills.
Of course, Snell & Wilmer, an Am Law 200 firm, previously cut associate salaries by 10 percent and furloughed staff who can’t work remotely. Now multiple tipsters from the firm are reporting there’s been some headcount management at the firm. And though they’re being told the terminations are performance-based (you know, exactly like the definition of a stealth layoff), the rank and file are deeply suspicious of the line they’re being told. Talk a look at a sampling of the tipsters’ reports:
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Snell Wilmer has laid off associates in LA and OC, for, supposedly, underperformance. Definitely BS… we all know they were stealth layoffs.
Layoffs were confirmed by the firm on the last associate call. The reason given for the layoffs was because of “underperformance.” This is literally the definition of stealth layoffs.
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Hi there, I’m an associate at Snell and Wilmer… the firm has been quietly making layoffs over the last two months during COVID. The firm is publicly stating that they are not doing layoffs, and has reduced all employees salaries as a way to “avoid layoffs” but had secretly been conducting layoffs anyways. Numerous associates in both Orange County and Los Angeles have been asked to leave despite having positive performance reviews, and other attorneys and associates have not been informed.
Snell Wilmer on an associate call … stated, after a question about layoffs, that “some” associates have been let go for “performance reasons.”
Snell and Wilmer conducting stealth layoffs. A few associates have been let go. Frustrating, since the EC stated that we were all in this together. Guess not.
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Yeah, it doesn’t sound good. I have nothing but the deepest sympathy for anyone that finds themselves going through it. And let me reassure you — it isn’t you.
Matt Feeney, Chair of Snell & Wilmer, provided the following statement, denying any associate departures were the result of layoffs:
“Snell & Wilmer is not conducting layoffs, ‘stealth’ or otherwise. Out of respect for the privacy of our former employees, we do not provide details on departures.”
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).
