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Biglaw firms continue to cut costs wherever they can in the wake of the coronavirus crisis to keep their firms afloat. Some firms thought that layoffs would suffice, but even that wasn’t enough, and they now find themselves making additional cuts — this time to partner draws and benefit programs.
You may remember that last month, Goldberg Segalla conducted staff layoffs “in large numbers,” according to our sources. Apparently that wasn’t enough, and now, the firm has turned its eyes to partner draws and benefits. We’ve been told that Goldberg Segalla will be reducing its biweekly partner draws by 10 to 20 percent, effective with the May 8 payroll. Sources also say that the firm has terminated its 401(k) matching program.
We reached out to the firm for confirmation, and this is what a spokesperson told us:
The reduction in draw does not reflect a decision with respect to overall compensation. In addition, the firm will be suspending the 401(k) match for a period of time. These are temporary measures we expect to institute in the short-term while operating in the COVID-19 environment.
Let’s hope Goldberg Segalla can save jobs through these additional reductions.
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Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.