We’ve been reading for the past few weeks about layoffs at law firms; especially in the UK & the US. HOB has been wondering when the first serious signs would appear that the global turndown is affecting the major legal publishers.
Lexis Nexis have, so far, managed to get away with a few hundred redundancies at a number of US locations.
But we read a report yesterday in JD Journal that gives the first proper indication that the recession is beginning to bite hard at Lexis.
JD Journal report:
LexisNexis Freezes Salaries
Tue, Feb 17
Legal document archive firm LexisNexis has announced it is freezing salaries at 2008 levels.
And quote a company wide email sent out last Tuesday:
In order to address what is shaping up to be a more challenging 2009, the senior LexisNexis management team, which includes the leaders of all business and functional units, has had to make some difficult decisions. These decisions include freezing salaries at 2008 levels across all of LexisNexis Group…Except for a promotion or when an increase is required by local law, no one in LexisNexis Group will receive an increase in 2009…
It is our sincere hope that these steps will enable us to otherwise minimize any job reductions to deal with the economic downturn. Of course, no one knows how the balance of 2009 will unfold.
It appears this report originated at Above The Law where it seems they are teasing Lexis over US Law firm Locke Lord Bissell‘s decision to make their employees use LOIS LAW before they research on Lexis
They write:
Nationwide Pay Freeze Watch: Lexis Parties Like It’s 2008
Tuesday, February 17, 2009 10:43 AM – By Marin
Lexis employees who Shepardize "Lexis salaries" may now find a red stop sign attached to their search results. Last Tuesday, the powers that be at Lexis sent around a company-wide email announcing that 2009 salaries would be frozen at 2008 levels for all employees:
In order to address what is shaping up to be a more challenging 2009, the senior LexisNexis management team, which includes the leaders of all business and functional units, has had to make some difficult decisions. These decisions include freezing salaries at 2008 levels across all of LexisNexis Group…Except for a promotion or when an increase is required by local law, no one in LexisNexis Group will receive an increase in 2009.
Salary freezes these day are as common as HPV, but a tipster reports that Lexis’ freeze is actually surprising given an earlier announcement:
This is after they announced on a company-wide call in December that there would be a 2% pool for raises.
What’s Locke Lord Bisell got to do with it, after the jump.
Even if Lexis is a flip flopper, salary freezes stink. But layoffs are decidedly worse. And if you’re wondering if layoffs are coming down the pipeline, Lexis doesn’t pretend to be psychic. But you don’t have to be a psychic to read between the lines:
It is our sincere hope that these steps will enable us to otherwise minimize any job reductions to deal with the economic downturn. Of course, no one knows how the balance of 2009 will unfold.
Recall that Lexis already laid off approximately 300 employees in April 2008, and that was even before the economy went to hell. The additional salary freeze measure can mean one of only two things: either Lexis is really feeling the pinch these days or Locke Lord Bissell’s switch to Loislaw was a massive blow of untold proportions.
By the end of the day we also hope to report a major development at another legal publishing company that will give no doubt as to where the industry is heading after so many years of increased profits and revenues.
