Clifford Chance makes US litigation layoffs
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Clifford Chance announced yesterday that it was laying off 20 associates in its US offices.
The associates are all in Clifford Chance’s 100-lawyer plus litigation and dispute resolution department in its New York and Washington, DC offices.
In a statement released today, Clifford Chance said the lawyers would be laid off because of “sluggishness in litigation matters”. This, it added was continuing despite the recent market volatility which has historically produced what it called “countercyclical balance”.
The firm added the layoffs were not performance related and that those affected would receive severance packages and outplacement services. The firm also confirmed there would be layoffs among its business services support staff in the fourth quarter of the current financial year.
New York litigators reacted with surprise to the news.
“We wouldn’t be laying off good litigation associates here, that’s all I can tell you,” said one litigation partner. “If you told me real estate or corporate I would not be shocked, but I find it surprising they’re laying off litigators.”
This is the second round of redundancies for the magic circle firm. Last year, Clifford Chance laid off six associates in its New York office structured finance department.
Readers' comments (5)
Anonymous | 15-Oct-2008 3:43 pm
Layoffs
The business just didn't grow the way the firm expected it to. White collar and securities regulatory work is still doing well but the group was simply over staffed. When things are going well in the market perhaps it's ok to carry the burden but given market conditions this is something that had to happen.
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Anonymous | 15-Oct-2008 3:48 pm
US is different
I'm just surprised this hadn't happened sooner. Who are their clients in the US? It's a fantastic firm world wide but in the US the UK approach to clients particularly in litigation does not work. Clients go to individuals not firms and CC always pushes the firm not individual mantra.
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Anonymous | 15-Oct-2008 3:55 pm
CC
CC had a handful of long term lucrative instructions in the US. I think these are probably coming to a close or are already completed. It makes sense that the litigation group will now be suffering.
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Anonymous | 15-Oct-2008 5:02 pm
CC
In these leaner times CC will suffer as client's will realise that they can get the same quality of work at much lower fees if they instruct mid size firms. I am not surprised business services will be hit as well. CC is far too overstaffed.
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Terrence King | 15-Oct-2008 10:19 pm
Litigation Layoffs
The irony of the current situation is that the fastest growing litigation specialists, Loancheck SA, are looking to recruit Lawyers with a banking and financial services background.
don't give up hope just yet
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