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Law Practice Management

After 170 Layoffs, White & Case Pares Down $250K Holiday Party; No Fireworks

Posted Nov 12, 2008 6:29 PM CST
By Martha Neil

Plans for the annual holiday party at White & Case were made months before the firm announced this week that it would lay off 70 lawyers and 100 staff members.

So the 2,400-lawyer international firm will be going ahead with the event at a midtown Manhattan restaurant, reports the Wall Street Journal Law Blog. However it's cutting back this year and plans to spend under $250,000, roughly half of what last year's gala at the United Nations cost.

And there also will be no fireworks, Law Blog reports. About 700 to 1,000 people are expected to attend.

The firm's announced layoffs this week were blamed on a lack of work in practice areas including banking and securities, as well as reduced attrition. They were reportedly not performance-related.

Comments

1.

B. McLeod
Nov 12, 2008 7:04 PM CST

In a show of solidarity with my brothers and sisters of far-off MANHATTAN, I, TOO, vow to spend less than $250K for my holiday parties.

So let it be WRITTEN.

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2.

Ellen Barshevsky
Nov 13, 2008 5:58 AM CST

These peeple should NOT be partying as 100’s of their coerkers are being LAID OFF. 

I think they should take the moneys from the party and GIVE it to others who LOSE the jobs.

My Boyfriend is ALSO worried about HIS JOB, and he is NOT even a LAWYER, like we are.  Since he is NOT admitted to the BAR, he said his OPTIONS are LIMITED. 

I told him he was an ACCOUNTANT, and mabye he could become a CPA, so then he would be PROTECTED.

I will tell the manageing partner at my firm NOT to hold any CELABRATIONS this year, since it is NOT a good time for LAWYERS, either.

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3.

John Von Awesome
Nov 13, 2008 7:46 AM CST

YOO people SHUD cheel.

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4.

Al Tidom
Nov 13, 2008 11:28 AM CST

I agree there should not be festivities here.  People are out of work and parties are not in good taste.

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5.

JD
Nov 13, 2008 8:51 PM CST

Firms should not be spending a quarter of a million bucks on external parties when they’re claiming that budget is so tight that they have to let attorneys and staff go. It is one thing to have internal parties for attorneys and staff on a smaller scale, but throwing a bash for a 1000 attendees truly is an insult to those who have been laid off at this tough time.

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6.

Consultant
Nov 14, 2008 6:44 AM CST

In the interest of full disclosure, I’m a graduating law student this coming spring and working full time in one of the “Big” consulting firms.  I currently plan to remain in my industry, post-bar.

This is pretty ridiculous, and really demonstrates that lawyers, or at least the type that run big firms, tend to make poor business decisions.  I work in management consulting, and things are tight in our industry too.  People are getting laid off, head count reduced, whatever you want to call it, at my firm and the other top firms.  However, our first response before doing any of that is always to control expenses, and this year that means no Christmas parties.  Yeah, it doesn’t stop the terms, but it does free up money to retain good performers that might otherwise have to be let go.  Those people either end up at our competitors, who did a better job of expense control, and make them stronger, or join a second tier firm who isn’t going to be second tier for long if they keep picking up people that we let go for the sake of maintaining a certain level of cash flow/unit value to the partners.

Times are tough, but the fact that big law firms like White and Case would rather make across-the-board cuts and not control their expenses, rather than cut discretionary spending and maybe focus more on terminating less folks—hopefully just the low performers, demonstrates a fundamental lack of business sense.  Yes, I know $250k isn’t a large sum, basically a rounding error on the top line, but it’s exemplary lack of judgment when layoffs are happening without respect to performance. 

To me, it says I don’t want to do business with a firm like that, not because it’s a slap in the face to those who got laid off or that it’s a frivolous expense, but that it has me questioning whether or not I trust them to handle my money and make sound decisions.

Our clients would not be pleased, and while there are large differences between big law and big consulting, clients are always going to prefer good judgment when they spend their professional services funds.

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7.

Al Tidom
Nov 14, 2008 7:09 AM CST

Parties are ridiculous. Who needs them! Fuey av dein ippish!

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8.

Hadley V. Baxendale
Nov 14, 2008 7:19 AM CST

A party at $250 a head.  Bad marketing; bad for morale.  Watch the general counsel for their clients take out the axe on the next bill!  The clients are waking up and will cause this flawed business model to fail.

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9.

Realist
Nov 14, 2008 7:24 AM CST

The party cost is long since sunk (unless they got a wondrous contract from the site),  You want them to just eat the cost and stay home? 

Better to get together and ‘enjoy’ what they can, and raise a glass to the dear departed.

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10.

JFD
Nov 14, 2008 7:56 AM CST

No Fireworks ??  Say it ain’t so, Joe.
How the Grinch and the Economic Crisis stole Christmas.
All the Best to those being let go at this time of the year.

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11.

ladida
Nov 14, 2008 8:09 AM CST

Comment removed by moderator.

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12.

Older Guy
Nov 14, 2008 8:17 AM CST

I work for a Big 4 accounting firm. We have cancelled all of our holiday parties and are giving the savings to charity.

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13.

Matt
Nov 14, 2008 9:23 AM CST

I think the party is tasteless too; but realize that $250K is about one lawyer’s salary these days, so it’s not like they had to fire anyone to pay for this.

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14.

Parties are good
Nov 14, 2008 9:25 AM CST

I understand that it sucks for the people losing their jobs, but what about the other 2000 employees?  Wouldn’t a little Christmas party help to improve morale for those left at the firm?  And really…$250k sounds like a lot of money, but it wouldn’t even be enough to pay 2 of the lawyers that were let go.

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15.

Bird
Nov 14, 2008 9:40 AM CST

To Commentators 5 and 6:  I did not read in that article that White & Case’s budget is tight.  I read instead that work flow is down.  What White & Case appears to be doing, in laying these lawyers off, is looking beyond next week, next month to a point in the future.  It’s called long-range planning.

If White & Case decided to forego a $500,000 Christmas party this year (which is what it appears to have spent last year) to save lawyers’ jobs, do you know how long they could keep those 170 lawyers employed?  Until they paid each $2,941 in salary.  For the lawyer that makes $150,000 (I’m not sure that White & Case employs this lawyer, by the way), that’s a week.  For the service partner that makes $500,000, that’s less than two days.  Or they could retain one of those service partners for a year, or two three- or four-year associates for a year (though of course if the work is not there, that lawyer or those lawyers may not have much to do).

How many of you commentators that constantly knock BigLaw (I’m not BigLaw, but was) would go into trial without a full understanding of the facts?  That’s what you’ve done here.

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16.

EarnesT
Nov 14, 2008 9:41 AM CST

party on

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17.

J.D.T.
Nov 14, 2008 9:45 AM CST

700 to 1000 people at a party costing $250,000?  That’s $250.00 to $357.14 per person for the holiday party, only. 

In our 2 person firm our annual “retreat” [a couple hours and a couple drinks at a small town bar while carpooling to the bar association meeting] cost about $25.00 for the bar tab and about $50.00 for the gas.  2 lawyers, 2 staff, and 4 spouses spent about $300.00 for dinner and drinks last December and we’ll do the same thing this year.  Add a couple gift certificates and some refreshments on Christmas and New Year’s Eve, a lunch now and then and a few beers at 5 p.m. on hot summer Fridays, and our whole entertainment budget gets up to about $1,500.00.  Give or take, including spouses, that’s about $250 per person. 

We spend in a year what they spend on one party - but life and social “necessities” are a lot cheaper out here in the hinterlands.  Give ‘em a break, it’s not that expensive, is it?

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18.

Midwest
Nov 14, 2008 10:09 AM CST

Our 40+ attorney firm cancelled the employee holiday party, with the promise to add the saved dollars to staff bonus checks.  The firm is partially funding a holiday lunch (main course) for the employees, with employees adding some potluck dishes, and adding a voluntary charity fundraising component to the lunch.  There have been mixed reviews.  Thoughts?

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19.

Spartan1
Nov 14, 2008 10:13 AM CST

$250K for a party is obscene in the Dennis Koslowski & Tyco party hardy mode. I suppose they’re only eliminating the Scale of Justice ice sculpture. The ones being let go are the fortunate ones. Managing partners need to get real because legal services can be outsourced like everything else. Go ahead and party.  Firms that burn money remind me of Rome burning under Nero, only now with the fiddle in one hand and the unmerited Christmas bonus in the other. What’s next for the law firms- a government bailout like the banks, Wall Street investment firms and auto industry?

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20.

W&C alum
Nov 14, 2008 10:27 AM CST

When I worked at White & Case in the early 90’s, we had our holiday party upstairs in the cafeteria, and you had to make requests for office supplies in writing to the supply Nazi in the basement, who never sent you more than 3 pens at a time.  The firm also prided itself on never having had to lay off lawyers.  Those days are obviously long gone (fireworks at W&C event?!?) but maybe now is the time to go retro.  I’d rather write with a cheap Bic than worry about getting axed.

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21.

P
Nov 14, 2008 10:28 AM CST

I too will spend less than $250K on my party.

I love reading posts from Ellen! I thought her boyfriend was a laywer, but I guess not!

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22.

Andy the Lawyer
Nov 14, 2008 10:43 AM CST

To P.: Think about it.  Picture yourself as an unattached lawyer.  Would you want Ellen as a girlfriend? Or a colleague?

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23.

JerseyGirl Esq.
Nov 14, 2008 10:49 AM CST

I’m with #13.  In BigLaw land, $250K wouldn’t even cover the salary of one senior associate.

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24.

Bill Lowerre
Nov 14, 2008 10:53 AM CST

I was in private practice for 35 years before going in-house. All I can say is the fact that anyone would even consider option three (or at least to the extent that extravagant parties favorably impress clients) simply shows how out of touch lawyers are with their clients. It is enough to think that anyone considers him/herself to be worth the hourly rates charged. To think that we are impressed because you then spend our money on outlandish parties is absurd.

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25.

R
Nov 14, 2008 11:03 AM CST

I work for a public entity, which gives us a spacous basement conference room for our partying pleasure. We use only the finest paper plates, and our staff greatly appreciates our sparing no expense in providing only major-brand soft drinks, potato chips, and cold cuts.

I think this year we can improve on White & Case: I might see if we can get permission to buy a package of sparklers: one for each staffer.

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26.

K
Nov 14, 2008 11:08 AM CST

Shouldn’t reduced attrition be a welcomed phenomenon.  It seems that the firm’s business model is built on bring them in and burn them out.  Way to go big law!!!

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27.

Ashtar94
Nov 14, 2008 11:12 AM CST

Andy the Lawyer, that’s an unfair question.  How can you have the insensitivity to ask us if we’d want Ellen as a girlfriend?

Besides, we don’t even know if she’s hot.

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28.

Corp Counsel
Nov 14, 2008 12:13 PM CST

I am amazed. In this economy the Wall Street types still expect an annual bonus higher than last year and amid law firm layoffs, these firms are still hosting $250k holiday parties? What the hell? Obviously I’m paying our outside law firms way too much money. Get real people. Are law firms and Wall Street firms living in fantasyland?
In the corporate world, bonuses are tied to corporate performance. If the corporation does not perform and lost as much as many of these Wall Street firms there would be no bonus. My corp is holding steady (fortunately) and no layoffs and the executives made the decision not to have the annual holiday party for its upper level management, of whom I am one. Do I mind? No because it preserve capital to weather this ecnonomy. I need to review just how much we pay our outside firms if they can host $250k holiday parties.

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29.

Southern Lawyer
Nov 14, 2008 1:13 PM CST

I think holiday parties are important, particularly in times like these. We need to get togather and support each other.  But to do that, you don’t need an open bar, or a sit-down dinner, or fireworks, for goodness sakes!  All of that is pretty ridiculous in ANY economy!!!

Having said that, in this particular situation, they have probably cut back as much as their already-in-place contracts would allow.  Thus, it would be silly, as another poster pointed out, to cancel or way downsize the party this year, given that they’d probably lose money.

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30.

Brinkley's Mom
Nov 14, 2008 1:30 PM CST

I agree with Southern Lawyer. My small boutique divorce firm will spend about $50 per person and invite our lawyers and staff, former clients, fellow small business owners and struggling non-profit folks to a positive, cheery and welcoming evening of fun. (And networking!)  The stress of these times can be depressing and downright debilitating, or not. You need to play as hard as you work.  Remeber that the Chinese use the same word for crisis and opportunity.  Let’s celebrate that outlook, and try to be kinder and gentler in our approach to those who may not be weathering the storms so well, particularly with the holidays upon us. It’s NOT all about the money. It IS all aout the relationships.

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31.

Houston Lawyer
Nov 14, 2008 3:11 PM CST

Um, people are always out of work, have difficult things going on in their lives, and, there are people in other countries living on less than $1 per day.  Should we never have another party again?  The argument that a party is in poor taste because people are losing their jobs doesn’t fly.  The issue is whether the firm should be spending $250,000 on a party when it is saying that it cannot afford to pay the people it has laid off, not whether having a party is going to make those people feel bad.  However, $250,000 might cover the salary of maybe 1.5 of those people, so is it really that big of a deal?  The party is to celebrate the holidays and the end of the year, and its for the people who still work at the firm.  Why should they be miserable, too, because some of their colleagues, whom the firm felt were the right people to let go, were fired?

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32.

Evan
Nov 14, 2008 3:28 PM CST

God forbid a big firm cut some salaries or eliminate a few lunches.  The Christmas party should be the first thing cut.  Go have dinner with the co-workers you actually like and do it on your own dime.

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33.

aspiring jerk from jersey
Nov 14, 2008 3:47 PM CST

why does everyone keep making things up about why the staff were fired (they couldn’t afford to pay their salaries, poor performance, etc.).  It says clearly it was because of a lack of business in those particular practice areas (banking and securities for those of you who commented without reading the article).  Based on the banking and securities markets right now, it kind of makes sense they’d be having issues in that dept.  White and Case has 2.5k lawyers in 22 offices, and they fired 70 of them because they are following their business model of “if it is not profitable, then cut it”....kind of makes sense.  I just hope the partner who was responsible for rainmaking in that area got the boot as well…

also, as many have pointed out, 250k is probably a single mid-level associates’ salary, so it’s essentially nothing to them.  W&C profits in the hundreds of millions, and has clients that can pay that kind of money for the services.  If you whiney corporate counsel types are so bitter about the fees you’re being charged, then litigate your own mergers and such yourselves

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34.

BigLaw
Nov 14, 2008 5:12 PM CST

My firm cancelled our holiday party and is donating $10k to a legal aid charity instead, because we are “mindful of those less fortunate than us.”  Like they were only going to spend $10k on the holiday party….

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35.

JME
Nov 14, 2008 11:07 PM CST

I think the ABA Journal should do an article on Ellen.  Then, I think we should party.  I designed my backyard as a party yard.  But who needs an excuse?  Cancelling a party is just being a Grinch.

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36.

Will
Nov 15, 2008 10:38 PM CST

This kind of extravagence is just another bit of evidence supporting higher taxes on the high bracket earners.

There are some assumptions being fleshed out here,  (i.e. contract obligations, sunken costs).  It is probably to late to cancel this year’s party.

Even in light of these folks’ high incomes, everything is a bit too extravagant, (especially the fireworks show last year, please).  Tone it down to a $100 per person party.  It is the working class folks, not necessarily the firm’s clients or even the terminated attorneys, who feel the indignation in a crunch/ econ. crisis.  It’s just a little bit too much extravagance, when many, many foks are eating ramen noodles and budgeting for Christmas. Get ready for the income tax increases on the high bracket earners.  This is what regular folks are screaming and demanding.

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37.

Al Tidom
Nov 16, 2008 6:55 AM CST

I agree with #33.  Let’s have an ELLEN party!

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38.

Kam
Nov 16, 2008 7:23 PM CST

As long as W & C isn’t looking for us to bail them out along with the banks, financial investment companies and Big 3 Auto, they can party as hearty as they choose to I note that they are spending about half of what that small band of AIG execs spent navel-gazing on a luxurious retreat after announcing their disastrous bitter end and begging for taxpayer help! Last time I looked W & C was doing pretty well. Not a candidate for an Uncle Sam take over!

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39.

wallstrafed
Nov 17, 2008 11:42 AM CST

it’s ironic that too many mba’s caused a meltdown that resulted in there being too many lawyers.  maybe there were too many lawyers to begin with pre-meltdown?  guess the meek will inherit the earth (as long as they are palin republicans).........

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40.

oaklandatty
Nov 17, 2008 3:47 PM CST

The party was undoubtedly committed and paid for some time ago—think about securing a venue for 700 to 1000 people during the height of the Xmas season in Manhattan!  All is not lost by the continued expenditure that that firm would undoubtedly benefit from not spending, however—> the food/venue service industry in Manhattan is benefitting from the $250K spent by the law firm, maybe keeping some persons in that industry from losing their jobs, or at least letting them keep their jobs longer.  Bright sides, silver linings!

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41.

Johny
Nov 17, 2008 8:09 PM CST

There should be a party.  It should be a nice event.  250K for 1000 guests does not strike me as excessive.  The party has been scaled back in light of the current times.  I see no problem here.  Happy Holidays and best to all.

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42.

Merry Christmas
Nov 21, 2008 10:29 AM CST

Let the party go on.  After slumming for 2,000 hours, lawyers need a fun evening as a way of saying thanks.

Merry Christmas to all!

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