2 Major Law Firms Relay Bad News Today But Avoid Memos, Law Blog Says
Updated: Almost as soon as law firm leaders send out an internal memo about noteworthy management decisions in today’s Internet-oriented world, it is leaked by insiders and widely publicized on the Web.
As a result of this Internet news culture, once-confidential information such as the huge number of layoffs being made at many law firms, is now routinely publicized—along with the full text of the internal memos announcing it. Some firms are still seeking to hold the line, however—and, presumably aware of the ubiquity of Internet leaks, apparently are fighting back by transmitting such news in a manner that makes it more difficult to confirm.
Today’s developments include news, according to Above the Law, that King & Spalding is laying off perhaps 80 people throughout its offices in the U.S. and abroad, and McGuireWoods is cutting its first-year associate base salary by 10 percent, from $160,000 to $144,000. But ATL hasn’t been able to rely on the usual leaked internal law firm memo to support its reporting because, at least right now, there apparently isn’t an internal memo.
King & Spalding is announcing its layoffs in individual meetings, the ATL blog says, and McGuireWoods provided news of the pay cut—as well as a shortened summer associate program—by voice mail.
It isn’t clear from the ATL post whether the claimed McGuireWoods pay cut applies to this year’s first-years or incoming associates; salaries for all associates have been frozen at 2008 levels, the law blog writes. However, the firm expects, by reducing pay, to avoid layoffs, ATL says.
Neither firm responded to requests for comment, ATL reports.
Late in the day, however, King & Spalding made an official announcement that not only essentially confirmed the ATL account but expanded upon it: A total of 37 associates and counsel and 85 staff members are being laid off, as discussed in a subsequent ABAJournal.com post.
Related coverage:
ABAJournal.com: “Partner: Committee Now Vets Memos Knowing They Could Be Blogged”
Updated at 5:30 p.m. to include link to subsequent ABAJournal.com post about official King & Spalding layoff announcement.
