There are a lot of different austerity measures a Biglaw firm can undertake to maximize their cash flow during this economically uncertain time. And it seems like in dribs and drabs, Nixon Peabody has hit just about all of them.
As we’ve previously reported, the firm laid off/furloughed approximately 10 percent of non-partner attorneys and did massive staff layoffs. Then they left law school students in their summer associate program “shit out of luck” when they canceled the SA program without guaranteeing those students future employment offers. Now we understand that attorney salaries are on the chopping block.
Multiple tipsters at Nixon Peabody report that, effective May 20th, associate salaries will be cut by 10 percent. Counsel at the firm will also see similar cuts. And the new class of incoming associates, originally slated to begin work at the firm in the fall, will have their start date pushed back until February 2021 (those folks are eligible to receive a $10,000 advance on their salary).
The firm provided the following comment on the latest cuts:
We have deferred our 2020 fall class until we can better anticipate future client needs. Our deferred fall associates will receive a $10,000 salary advance.
Our firm entered 2020 in a strong financial position. By making some difficult decisions and taking action, we plan to come out of this pandemic just as strong. Every day, our attorneys are supporting individuals, businesses and communities, helping them navigate the many issues they are facing in these challenging times.
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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Kathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).