Biglaw

Furloughs Turn Into Layoffs At Yet Another Am Law 100 Firm

And some attorneys still remain furloughed.

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In the past few days, Above the Law has reported on a number of firms that have been conducting layoffs and announcing those layoffs at the same time as their COVID-19 salary restorations. We’ve just learned that Nixon Peabody — a firm that placed 75th in the most recent Am Law 100, bringing in $505,520,000 in gross revenue in 2019 — is one of those firms.

As we reported in April, Nixon Peabody furloughed about 25 percent of its staff members, and later that same month, the firm cut 10 percent of its non-partner attorneys (divided by approximately 5 percent layoffs and 5 percent furloughs). In May, the firm came for employees’ salaries and deferred its incoming associate class. Now, sources tell us that some of those whose salaries were reduced had had them restored, and further that while some of those furloughed have returned to the firm, others have been laid off.

Here’s an excerpt from a confidential Nixon Peabody memo sent sometime last month (available in full on the next page) regarding staff salaries:

When we went remote abruptly in March, we took steps to ensure that we could navigate the uncertainty of the pandemic. One of the decisions we made in May, that took effect in June, was to temporarily reduce all NP staff schedules and salaries to 80%.

Now that we are a few months into this schedule change, people are getting busier. As a result, we have made the decision to restore many staff members to a 100% schedule and base compensation effective August 31.

In the same memo, Nixon Peabody discussed furloughed staff, noting that while some will return to work at the end of September, others never will. As far as attorneys are concerned, many have been brought back, but some are still waiting for word on when their careers will resume. Take a look:

Today, we will reach out to all of our furloughed staff colleagues to provide an update to each of them. Some will be notified that their position has been restored and that the current plan is for them to return to active work with NP on September 28th. Others will be informed that their position has been eliminated and their employment with NP will be ending. HR directors will be reaching out to these colleagues today. …

Our furloughed attorneys are not part of the communications occurring today. Over the past several months, we have brought back a number of our furloughed attorney colleagues. We still have a few who are currently furloughed. We are in the process of evaluating our business needs to determine who we may be able to bring back to NP, and the potential timing for any returns.

At this time, we do not believe any movement has been made in terms of restoration of associate salaries. We reached out to Nixon Peabody for comment, but the firm did not immediately respond.

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Best of luck to all those who are affected by the layoffs at Nixon Peabody.

(Flip to the next page to see the full memo from Nixon Peabody.)

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).

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.

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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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