It was just last week that we said the layoffs were coming, and we hate to say we told you so, but it looks like we were right. The coronavirus crisis is far from over, and after one financial quarter has passed, it may just be getting started with Biglaw.
Sources have reached out to us regarding associate layoffs occurring at Hughes Hubbard & Reed — a firm that was recently ranked #116 on the Am Law 200 with gross revenue of $288,100,000 — in light of the COVID-19 pandemic. We’ve been told the firm is offering affected associates three months’ severance pay as well as five free sessions with a recruiter to help them find another job (and that the recruiter was hired to help “everyone” impacted, leading associates to believe these were large-scale layoffs). It is unclear at this time how many associates were let go. We’ve heard that the reason for the layoffs was there not being enough work to go around at the firm. Those who have contacted us said they were “blindsided” by the news, as the firm has been touting its financial success via email every Friday.
We reached out to Hughes Hubbard for comment. Here’s a statement from the firm:
More than three months into the pandemic, the deep impact of court closures and a slowdown in deal activity have given us a better-informed sense of the manner in which the pandemic has changed the way we do business. To prepare for that future we must take action that we have long sought to avoid and layoff certain attorneys and staff. We regret the hardship these steps cause as we, and the industry, continue to evolve to meet this changing environment. We have confidence that the action we take today will enable us to continue to serve our clients, to compete at the highest level and to deploy our people effectively.
Best of luck to all those who are affected by the layoffs at Hughes Hubbard.
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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Earlier: Am Law 100 Firm Slashes Salaries, Furloughs Staff Lawyers And Staff
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.