Law Practice Management
Howrey Cuts 25 Staff, Seeks Capital from Equity and Nonequity Partners
Posted Apr 17, 2009 4:49 PM CST
By Martha Neil
As part of a restructuring effort that has been ongoing since mid-2007 and is intended to help the law firm operate more efficiently, Howrey has cut 25 staff positions.
It is also asking both equity- and nonequity partners to contribute an unspecified amount of capital to the firm, at least some of it on a voluntary basis, an unnamed firm "spokesperson" tells Above the Law. Nonequity partners are being asked to contribute capital beginning June 1, 2009.
Much or all of the capital sought apparently is intended to help the firm grow, according to what this spokesperson tells the law blog.
The 25 secretarial staff cuts announced within the firm this week affected all offices except New York and East Palo Alto, Calif., explains an internal firm memo published by ATL.
A firm spokeswoman did not immediately respond to the ABA Journal's requests for additional information late this afternoon.
Related coverage:
ABAJournal.com: "A Start of a Trend? Big Law Firms Ask Partners for More Cash"
ABAJournal.com: "Howrey Axes About 10 Associates; Not Layoffs But ‘Outplacement’"
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Comments
B. McLeod
Apr 17, 2009 8:16 PM CST
To me, “non-equity partner” means the firm does not get to make cash calls. If Howrey needs more “equity partners,” it needs more “equity partners.” I really don’t see how they can expect to establish a system where the “non-equity partners” get to participate in cash calls, but not profits.
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