After already announcing monthly partner distributions would be capped and retirement benefits cut, Dorsey & Whitney has gone back to the austerity measures drawing board. Yesterday, in a firmwide video call, additional cost-cutting — in the form of layoffs and salary cuts — were announced.
As a tipster at the firm tells Above the Law, the salary cuts are in ranges for those making over $150,000 and, it what many perceive as a change in course, announced an unspecified number of layoffs of both attorneys and staff:
Dorsey Whitney announced an unspecified number of terminations (attorneys and staff) and salary cuts in a video from the managing partner yesterday. Salary cuts are: 10-20% for income partners, 15-20% for of counsel, “generally” 15% for associates (with opportunity for true-up at end of year), 15-20% for management level staff making over $150k. No explanation was given for the vague ranges. The firm had been discussing the possibility of salary cuts for weeks and even solicited associate feedback on the matter, but had until now signaled strongly that they were not considering layoffs at this time.
And a shortened, virtual summer associate program and a delayed start for the new class of associates is also being implemented:
Additionally, early this morning, the incoming first year associates were informed that their start dates would be deferred to January 2021, and the summer associate class will be entirely virtual.
As reported by Law360, the firm provided comment on the cuts:
“After intense deliberation, we made these hard decisions so that we will continue to be a strong, efficient law firm,” Dorsey & Whitney managing partner Bill Stoeri said in a statement. “I am extremely grateful to all of those who have served the firm, and for those who will continue to work to serve our clients in this new environment.”
The firm also said billable hour guidelines for associates would be reduced for the year and there will be special productivity bonuses for especially busy attorneys.
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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).