Ropes Chairman R. Bradford Malts' e-mail to the firm

From: Malt, R. Bradford
Sent: Thursday, January 29, 2009 4:41 PM
To: All Active Personnel
Subject: Reduction in Force

In October I wrote to you about the strength of our firm in the face of changing economic circumstances. I also said that our strength does not render us immune to what is happening in the broader economy. Our clients and marketplace have been seriously affected by the continuing global economic downturn, and the recession is now widely seen as the most serious since the 1930s.

Ropes & Gray continues to be sound, and we are grateful for the competitive advantages afforded by our talented attorneys and staff, and our diversified practices and client base. At the same time, we are cognizant of changing dynamics in our economic landscape and the need to align our staffing with the firm’s needs and outlook.

As a result, we have reluctantly decided to eliminate 106 staff positions across all departments in the firm, or 10% of non-lawyer staff. While I know this is painful news, I felt it was important to share with all personnel as soon as appropriate.

Our decision to undertake this reduction in workforce was not made lightly. We value our workforce as an integral part of our client service mission, and as a part of the extraordinary community of people that make Ropes & Gray what it is. Unfortunately, the changed external environment required us to make hard choices that could be avoided in more robust economic times.

We reached this difficult decision only after a thorough analysis of all possible areas for prudent cost reduction. We determined that, in addition to significant cuts in non-personnel expenditures that have been made or are forthcoming, it was necessary to reduce our staff numbers. These expense cuts and reductions in force represent an acceleration of our ongoing effort to provide clients with the most cost-effective, value added legal services possible. The bulk of the reductions occurred in the Boston and New York offices; Palo Alto and D.C. also experienced some reductions.

Affected employees were informed this afternoon and provided with severance benefits and outplacement counseling. The firm appreciates the contributions made by all affected employees, and we are working with them to ease their transition.

With today’s actions, we believe we have fully taken the necessary personnel steps to address current economic circumstances. We do not anticipate making any further non-lawyer or lawyer reductions in force.

Next week, the Policy Committee will begin annual State of the Firm presentations to associates, and meetings are being scheduled to address the same topic with our staff. At these forums, we are happy to address questions about these topics or any other issue that may be of concern to you.

While this is a difficult time, we continue to be well positioned to capitalize on opportunities that will arise from the current environment. I encourage all of us – staff and lawyers alike – to focus on the priorities that will help the firm continue to grow and provide the best client service anywhere. I thank all of you for your continuing hard work and commitment.