Am Law 100 firm implements additional cost-cutting measures amidst austerity measures
Salary cuts for attorneys and staff, shortened virtual summer program, delayed start for new associates
Managing partner states "hard decisions" made for strong, efficient law firm.
Dorsey & Whitney, an Am Law 100 firm, has announced more austerity measures in a firmwide video call. After already capping monthly partner distributions and cutting retirement benefits, the firm has now announced layoffs and salary cuts for both attorneys and staff.
According to a tipster at the firm, the salary cuts are in ranges for those making over $150,000.
The cuts will be 10-20% for income partners, 15-20% for of counsel, "generally" 15% for associates (with the opportunity for true-up at the end of the year), and 15-20% for management level staff making over $150k. No explanation was given for the vague ranges.
The firm had been discussing the possibility of salary cuts for weeks and even solicited associate feedback on the matter but had until now signaled strongly that they were not considering layoffs at this time.
In addition to the layoffs and salary cuts, the firm has also implemented a shortened virtual summer associate program and a delayed start for the new class of associates. Early this morning, the incoming first-year associates were informed that their start dates would be deferred to January 2021, and the summer associate class will be entirely virtual.
Dorsey & Whitney Managing Partner Bill Stoeri said, "After intense deliberation, we made these hard decisions so that we will continue to be a strong, efficient law firm. I am extremely grateful to all of those who have served the firm, and for those who will continue to work to serve our clients in this new environment."
The firm also announced that billable hour guidelines for associates would be reduced for the year, and that there will be special productivity bonuses for especially busy attorneys.