December 3rd in Credit Crunch, Current Affairs, News, Redundancy by Editor .

Mid-Week Misery – Redundancy Watch: Brown Rudnick and DLA. Plus Davis Polk Bonus Cuts and CC Defections

Whilst here at Solicitr we try to break up the bad news into digestable pieces, it seems like there is more than your average mouthful of misery to swallow this week. Redundancies feel as if they have an air of inevitability about them and bonus cuts now seem an expected sacrifice – why such fury then? If you want to understand why they provoke such fury cast an eye at the US culture. Don’t make the mistake that it’s …

Charles Tyrwhitt UK
 

Whilst here at Solicitr we try to break up the bad news into digestable pieces, it seems like there is more than your average mouthful of misery to swallow this week. Redundancies feel as if they have an air of inevitability about them and bonus cuts now seem an expected sacrifice – why such fury then? If you want to understand why they provoke such fury cast an eye at the US culture. Don’t make the mistake that it’s irrelevant to the UK though. Read on to see the parallels.

Firtly though, following the redundancies posted yesterday, Brown Rudnick has announced this week that it is to lay off almost 10% of its global workforce. Three associates and one member of the firm’s support staff in London are at risk. In the US, the job losses affect 20 other lawyers, three paralegals, and 20 support staff in Boston, Hartford, New York and Providence.

More significant to the UK market is DLA Piper’s announcement that it has launched a redundancy consultation across it offices with up to 40 potential job losses. It is understood that the figures include 15 to 20 fee-earners and up to 20 support staff but that no partners face walking the plank. The news comes following consistent denials that it was looking to make cuts despite widespread rumours.

Meanwhile for those lucky souls not facing redundancy, the news that Davis Polk & Wardwell has followed the lead of US rivals Cravath Swaine & Moore and Simpson Thacher & Bartlett by halving its bonus payouts for 2008 is unlikely to please associates. Last year junior associates received $35,000 while the most senior associates were paid $65,000 in bonuses. To understand why the bonus cuts provoke such fury check out this extract from Above the Law :

" As many people have pointed out, being angry over "only" a $20,000 bonus is something that most of the working world finds appalling. We get it: "spoiled whiners," "real people are losing their jobs," "nobody should complain about a six-figure salary," yada, yada, yada…

But other people have pointed out that most of the working world doesn’t have $150,000 plus in educational debt to pay off before Biglaw lets you out of white-collar indentured servitude. Most associates don’t blow their bonuses on hookers and coke. (Fools!) Sadly, paying off debt is the final destination for most of the bonus cash." Sound familiar???

And finally, Clifford Chance’s US litigation practice has seen four partner defections this week. John Carroll, Warren Feldman and David Meister have left the firm’s New York office and are understood to be in talks with Skadden Arps Slate Meagher & Flom and James Moyle has moved to US firm Morgan Lewis. Oh dear.

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