Paul Hastings Axes 44 Associates, 87 Staff; Chadbourne Cuts 25 Lawyers
Two more well-known law firms have confirmed layoffs today: Paul Hastings Janofsky & Walker is asking 44 associates and 87 staff members to leave in its U.S. offices, and Chadbourne & Parke is cutting approximately 25 lawyers worldwide.
This news follows layoffs announced earlier today by Venable, which is eliminating 16 attorneys and 48 staff members from its roster. With today’s layoffs, the total number of major law firm jobs eliminated since Feb. 27 is now nearing 2,700.
In an internal memo obtained by Above the Law, Paul Hastings says that reductions in force were required by the dismal economy.
“Although the firm achieved a steady financial result in 2008, over the past six months client demand has declined, particularly in transactional disciplines, which have been hit hardest by the deteriorating global financial markets,” the memo states. “Our clients are deeply affected by the severe and protracted global recession, and, unfortunately, we cannot predict any material improvement in 2009 and expect 2010 to be a challenging year as well for law firms and their clients.”
Similarly, Chadbourne, which is particularly known for its representation of insurers in coverage matters, says in an internal memo that “the unprecedented economic downturn in which we are now operating” required the attorney cuts, according to Above the Law.
Because of the anticipated continued reduction in demand for legal services, Chadbourne is also deferring the start date for incoming first-year associates to January 2010, the memo notes. The deferred first-years will be paid a $13,000 stipend, notes a National Law Journal article on the layoffs.
“These actions to align our staffing levels with the current demand for our services, while extremely unpleasant, and our ongoing expense reduction measures, coupled with the diversification in our practice mix and geographic dispersion, will position us better than many firms to meet the challenges of this severe recession,” the memo concludes.
Yesterday’s coverage:
ABAJournal.com: “731 Lawyers and Staff Laid Off Today at Morgan Lewis, K&L Gates and White & Case”
