It keeps on coming…
On today’s menu … poor old Elie Mystal it’s all she ever gets to write about……..
Dewey & LeBoeuf: Latest Firm to Offer a Year-Long Deferral to All Associates
Associates at Dewey & LeBoeuf just left a firm wide meeting. Sources report that firm management was very frank with associates about the firm’s financial numbers and future health of the firm.
But the headline news is that Dewey & LeBoeuf has decided to join Skadden (and Shearman & Sterling) in offering a year-long deferral to all of its associates. The program (which is called DL Pursuits) is more similar to Skadden’s Sidebar than the initiative announced by S&S this morning.
Here are the basic facts: one year deferral to do whatever you want, 1/3rd of your D&L salary, full medical benefits, $1,000 in student loan repayment, and bar fees. And if you can get a paying job while you are taking time off from the firm, you still get the 1/3rd salary stipend.
Nationwide Layoff Watch: Thompson & Knight Lays Off 42 People
The Texas firm Thompson & Knight has laid off 42 people: 17 associates, 25 staff. The firm’s managing partner, Peter J. Riley, had this to say to Texas Lawyer:
"It’s no fun," Riley says. All of the lawyers are associates — only two of them are first years — who practiced in real estate or other business-related areas that require bank money to operate. "It was mostly mid-level associates in business areas. And I’d say it was a one-third real estate and two-thirds more corporate general business," Riley says. "These are good lawyers. It’s like a rifle shot went through all our law firms, and the financing groups just stopped. We are doing transactions, but man, it’s nothing like it was."
Nationwide Layoff Watch: Fenwick & West Lays Off 22 People
Don’t look now, but this is actually shaping up as a pretty bad week for associates who want to hang onto their jobs. Seyfarth cut 50 people late Friday, Milbank let go of 89 yesterday, and we’ve been able to confirm stealth layoffs at Sullivan & Cromwell.
The latest news comes from Fenwick & West. Sources report that the firm has laid off 22 people: 15 associates and 7 staffers.
But a tipster reports that the layoffs might not be confined to the associate and staff ranks:
There have also been a bunch of "farewell" and "goodbye" emails over the last few weeks from "Of counsel" people in the corporate group. So it seems likely that "stealth" layoffs are also occurring among the higher paid, but non-partner, group as well.
Nationwide Layoff Watch: 89 Down at Milbank
Back in January, we asked if Milbank was laying the ground for stealth layoffs. The firm changed its annual review process, and associates were concerned. At the time a firm spokesperson suggested there was nothing to worry about:
We did an overhaul of our evaluation system in late 2007 to early 2008 that was part of a broader firm excellence initiative. The new review process was designed to encourage excellence and provide more meaningful feedback, forward-looking career guidance and greater focus to the professional development of our associates.
Today, associates received some very "meaningful feedback," as 49 of them were let go.
The firm also laid off 40 staffers as part of today’s cuts.
We understand that while all departments were affected, general corporate was the hardest hit.
Milbank spokespeople did not respond to an immediate request for comment, so we don’t know if these layoffs will be called economic or performance based. But we also understand that there is a full memo going around explaining all of the moves, we’ll post it when we get it.
