We are now several months into the COVID-19 health crisis, and it’s increasingly clear there’s no solution on the immediate horizon. Faced with the prospect of even more economic uncertainty caused by the novel coronavirus, Biglaw firm are making tough choices to cut costs and maintain, as much as possible, their cash flow.
The latest firm making these COVID-19 austerity measures is Locke Lord, ranked 76th on the most recent Am Law 100 ranking. But as we’ve seen over and over, even historically successful firms have deemed it prudent to start making cuts now.
So what is going on at Locke Lord? According to Above the Law tipsters, they’re doing a 10 percent cut in associate salaries that began May 1 and are anticipated to continue through the end of the year. (And tipsters say this move is “in addition to the 15 percent of associate salary tied up in ‘automatic bonuses’ that get paid out Dec 31 at the 2050 hours threshold.”)
Plus, sources at the firm say there have been some staff furloughs that were initially described as folks who could not do their jobs remotely. However, tipsters describe the situation as “confusing” and they’re learning exactly who was let go “by getting automatic bounce back emails.” Not exactly the model of transparency one might hope for.
We reached out to the firm for comment, but have yet to hear back.
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).