The Biglaw Firms Rolling Out Good News, For Now
Updated with even more firms delivering good news.
It’s Monday, and yup, it’s still a terrifying time to be alive. There’s just a crap ton of uncertainty right now, both health-wise and financial, and it is hell on everyone’s anxiety.
Some Biglaw firms feel you. And rather than let you linger in the unknown and fall back to opacity, they’re giving associates a heads-up about the firm’s financial condition — and it’s good news.
The first firm Above the Law heard was reassuring associates was Cahill. But since then our tipster network has reached out with even more encouraging tales.
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Weil:
Weil told associates in a townhall that layoffs, furloughs, and pay cuts are not on the table. Associates will get a reimbursable tech budget of 250. Most importantly, Weil is still paying its contractors, cafeteria staff, etc. while the offices are closed.
Latham:
Latham (Chicago) has repeatedly reassured us in video calls that leadership is not discussing cuts or layoffs and that we are extremely well positioned.
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Quinn:
Quinn has assured (for now) there will be no layoffs, no salary cuts, no furloughs. Tech stipend provided. Very caring and comforting messaging.
Shearman:
Shearman had a firm wide call this morning, saying that we are in good financial standing and that the firm has frozen promotions and raises, but does not plan on any furloughs or salary reductions
Perkins Coie:
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Perkins Coie made similar assurances to associates as Cahill Gordon on a call yesterday. The executive committee members on the call touted our strong balance sheet and diverse set of clients and practice groups to help weather this slowdown. Partners are apparently delaying their distributions for now.
Morrison Foerster:
Re big law layoffs: MoFo has also been touting its financial stability to associates. Although the firm isn’t as explicit as Cahill, the messaging is clear: the firm had a huge year last year, a big first quarter, prepaid a bunch of expenses this year last year, and hasn’t touched its line of credit in nearly a decade.
Fried Frank (excerpt from an email from Chairman David Greenwald):
Honestly was so relieved when this email landed in my inbox. He has been so honest and open with us through all this. So grateful.
Vinson & Elkins:
Vinson & Elkins had a conference call with associates Friday morning and made assurances that no layoffs/furloughs or reductions to base pay are contemplated as of now.
Ropes & Gray:
Ropes has, in several ways and at different times, gone out of the way to reassure associates that they should not worry about their jobs or their pay and that the firm is well positioned to weather the storm. The communication from the powers that be, going back to late January when the virus fears started spreading, has been pretty incredible and made associates feel like the firm had a good grasp on the situation. That continues to be the case with regular communication from firm and practice leadership. Ropes also offers a 500 tech stipend every three years to associates and counsel for new home office equipment.
Kramer Levin:
No layoffs/furloughs/paycuts as of now. Healthy financially and well positioned. Existing tech budget (50% reimbursement of up to $2000 cost every three years) still valid. If exhausted, can get 50% reimbursement of up to $400 cost of next three-year period.
Morgan Lewis:
Morgan Lewis also made assurances to associates that no layoffs, furloughs, or pay cuts are expected.
Firm Chair Jami McKeon has said this multiple times (on a video call as well as on a voicemail sent out to all associates). In fact, professional staff just received cost of living raises.
Schulte Roth and Zabel:
Schulte Roth and Zabel has made assurances that they have no plans for layoffs/furloughs of any attorneys. The firm also shared that it had a strong last year is well positioned. $500 tech reimbursement is offered (in addition to existing $1000 tech reimbursement every 2 years). The firm leadership has been very supportive for everyone.
DLA Piper:
Bryan Cave Leighton Paisner:
The firm’s conservative financial footing has paid off. BCLP had an amazing first quarter despite the last two weeks of March and has no debt. To increase cash flow, the firm has cut equity partner draws, but is leaving associate pay alone and has assured everyone that no furloughs, layoffs or salary cuts are being planned for associates or staff. Overall message: we are in a solid position to weather the storm.
UPDATE: Apparently Bryan Cave spoke too soon. Check out the latest from the firm’s austerity measures.
What is your firm doing doing during these difficult days? Are they assuring the safety of your job? Or are they 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).
