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As each hour ticks by, another law firm’s partnership makes the hard decision on what to do in light of the havoc that the coronavirus outbreak has wreaked upon society at large. Will the firm cut salaries? Are furloughs or layoffs in play? What about reducing partner draws and distributions for the good of the team?
One Biglaw firm is doing everything it can to save jobs, but that means people will have to suffer when their salaries are slashed.
Sources tell us that Am Law 200 firm Day Pitney plans to enact numerous cost-cutting measures in an effort to help stabilize the firm through the economic upheaval that’s been caused by COVID-19’s impact on America. Specifically, we hear that the firm will introduce pay cuts firmwide, shortened work schedules for staff, and reduced partner draws and distributions.
We reached out to Day Pitney for confirmation, and received a statement from Tom Goldberg, the firm’s managing partner:
In the midst of the COVID-19 pandemic, like most businesses, Day Pitney has been faced with some very difficult decisions. To maintain our financial stability during this time while continuing to effectively serve our clients, we have implemented several measures beginning April 13, including:
1. A 15% pay cut for all attorneys and some staff
2. During the remote working period, a temporary reduction to 60% of normal working hours and pay for other staff
3. Significant reductions to partner draws and suspension of the scheduled April supplemental distribution
While the cost reductions are spread among all groups within the firm, we recognize that the partners must bear the greatest share of the burden. We intend that the partners’ share of any shortfall this year will exceed that of the firm’s employees.
We have not taken these steps lightly and recognize that these reductions may impose material hardships.
“We are implementing these measures to preserve the financial health of the firm, to assure that we remain well-positioned to serve our clients, and to mitigate the need for any type of layoffs or furloughs,” Goldberg said. “We remain confident in the long-term success of our firm.”
We hope that everything Day Pitney is doing to avoid parting ways with its employees during a pandemic works.
If your firm or organization is slashing salaries, closing its doors, or reducing the ranks of its lawyers or staff, whether through open layoffs, stealth layoffs, or voluntary buyouts, please don’t hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive. You can email us or text us (646-820-8477).
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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.