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As market plunges, law firms comfort nervous associates
October 8, 2008
Heller Erhman has called it quits.
The credit crunch is putting the brakes on major projects, drying up some areas of legal work.
Layoffs have hit top-name firms.
What's a law firm to do about nervous partners and associates who are waiting for the other shoe to drop?
How about calling a meeting to inform associates that their jobs aren't on the line, or circulating an e-mail touting the firm's work on the high-profile bankruptcy filings that have made headlines for weeks?
That's how a number of firms are reassuring attorneys amid the current financial upheaval.
Chicago-based Jenner & Block held two meetings last week to tell partners and associates that the firm is having a strong year and layoff aren't on the way.
Managing partner Susan Levy said associates clapped after hearing the news, and that a number of attorneys praised her decision to address the issue.
"I think communication between management, associates and partners is very important," Levy said. "I thought that everyone would appreciate hearing that the firm is in a strong financial position."
Boston-based Ropes & Gray and New York-based Weil, Gotshal & Manges have sent out e-mails assuring attorneys there is no need to panic.
The Ropes & Gray message, sent last week by chairman Brad Malt, said the firm is "well positioned to weather the turbulence in the marketplace" because its practice areas and clients are diversified. In fact, the e-mail said that the Wall Street crisis is an opportunity for the firm to pick up business as the financial sector attempts to get back on track.
Firm spokesman John Tuerck declined to comment on the e-mail.
The Weil Gotshal e-mail congratulated the firm for playing a role in some of the biggest developments in the financial industry, including Lehman Brothers Holdings Inc.'s and Washington Mutual Inc.'s Chapter 11 filings among others.
It's unclear how many firms have taken steps to reassure attorneys about the future and the bottom line, but the concerns are clearly being felt around the country.
Larry Theis, chairman of Denver-based Holme, Roberts & Owen, said he recently called a meeting with the 260 partners and associates to assure them that the firm is not planning any layoffs. Associates in particular have been jittery.
"Basically, we're saying 'Don't worry,'" Theis said. "We're doing OK."
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