Dewey & LeBoeuf posts 3 per cent turnover rise for 2011
Dewey & LeBoeuf has reported a 2.8 per cent increase in overall revenue for the 2011 financial year.
Steve Davis
The figures come in the same week that chairman Steve Davis informed the firm that 5 per cent of lawyers and 6 per cent of support staff would be cut in a firm-wide redundancy round (5 March 2011).
Although the firm saw positive metrics across all areas in the 2011 financial year, with revenue rising from $910m (£567m) to $935m (£603m) and average profits per equity partner (PEP) increasing by one per cent, Davis’s memo suggested that cost-cutting measures are crucial to ensure the firm’s competitiveness.
The email, published in full by US blog Above the Law, read:“Notwithstanding our results in 2011 and so far this year, the firm’s executive committee has decided to take proactive steps to align the firm’s resources with anticipated demand and strengthen the firm’s competitiveness in the global marketplace.
“Some recent partner departures have been consistent with the firm’s strategic planning for 2012, and we expect some additional partners to leave. In addition, we are reducing the number of lawyers and administrative staff globally by approximately 5 per cent and 6 per cent respectively.”
Above the Law also cited an article from the Daily Journal that stated that four sources from within the firm confirmed that it was deferring payment of 2011 profit distributions. In 2008 The Lawyer reported that the firm had suspended payments in order to build up a strong cash base (3 November 2008).
A spokesperson for the firm denied that it had deferred any profit payments. Davis was not immediately available for comment.
Readers' comments (2)
James Hill | 8-Mar-2012 7:25 pm
Let's see
A 3% revenue rise means a 5% reduction in staff. Keeping the proportions, a 6% rise would mean a 10% reduction. So if there were to b3 a 60% rise, there would be no firm left. That means PEP would be infinite - now that should suit the the EC
Words mean whatever I want them to mean.
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Anonymous | 9-Mar-2012 10:17 am
None of this is credible. We're seeing CV's from most of their lawyers. Apparently there's some huge debt payment falling due shortly and they don't have the cash to make the payment. Having said that, DL has consistently gotten rid of or lost partners since the crisis began. Makes you wonder what's wrong with their hiring policy in the first place and it can't be good for firm culture.... unless you want a nasty eat what you kill culture.
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