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.

Read more...

Layoffs at Ropes & Gray LLP

Boston's Ropes & Gray, which gave their associates bonuses and raises for 2008, is reportedly laying off staff. Close sources at Ropes & Gray say that the firm has laid off 110 people firm wide today. According to my sources, no attorneys were laid off.

This does not stop Ropes & Gray LLP from expanding its New York office.
The New York Observer reports the firm is stretching out its legs in New York, taking a new floor in its 1211 Avenue of the Americas building.

"The law firm activated a provision of its 2005 lease of 250,000 square feet that allows it to take an additional floor in the tower. The lease gives Ropes & Gray the 32nd floor, which the Royal Bank of Scotland recently gave up, in addition to the space it occupies on floors 35 through 40 in the 45-story skyscraper."

Ropes & Gray LLP is a national law firm with offices located in Boston, New York City, Palo Alto, San Francisco, Washington DC, Chicago, Hong Kong and Tokyo; and conference centers in London and Providence, Rhode Island. The firm has over 850 lawyers worldwide. It was founded in 1865 by John Codman Ropes and John Chipman Gray.

Read more...

Unemployed Lawyers

Apparently the auto and bank industries are not the only ones to be hit by the financial meltdown and the jobless tsunami that followed. Law firms have been struggling for some time and now as the economy worsens, the number of unemployed lawyers nationwide has substantially increased.

Rumor has it that Ropes & Gray LLP is not going to give salary increases this December, however, bonuses are still forthcoming. Thacher Proffitt & Wood LLP has reportedly reached out to King & Spalding LLP about the possibility of taking over the struggling firm in order to avoid dissolution. Legal Times has reported that King & Spalding may take over approximately 100 of Thacher's 195 lawyers, but that it's not yet clear which practices and offices the 100 lawyers would come from. A New York legal consultant has said that "There's a tremendous amount of uncertainty about who's going to be invited to the party."

Howrey LLP has let go of approximately 10 associates. The firm said in a statement on Thursday that these were not layoffs but “outplacements.”

Read more...