Economy, Legal Model Drive Dickstein Shapiro Cuts

By Jocelyn Allison

Law360, New York (November 04, 2009) -- Dickstein Shapiro LLP confirmed Wednesday that it will lay off 3 percent of associates and counsel and 10 percent of staff members in order to align itself with economic conditions and the “emerging legal services model.”

Chairman Michael E. Nannes said affected employees will be notified immediately and will be offered a comprehensive separation package, including salary and medical coverage continuation, as well as outplacement services, according to a firmwide memo posted on legal blog Above the Law.

“This was a difficult decision made with great reluctance after careful review of current circumstances in the legal industry and at our firm,” Nannes said in the memo.

“We believe that this action combined with the continued strategic growth of our core practice areas and our conservative financial management will contribute to the firm's continued strength and success in the years ahead,” he said.

Dickstein spokeswoman Michelle Rodgers confirmed Wednesday that the memo posted on Above the Law had been distributed across the firm and that the information was correct. She did not provide details about how many people would be let go or which practice areas or offices would be affected.

“We deeply appreciate the dedication, service and valuable contributions of the attorneys and staff affected by this decision,” Nannes said in the memo.

“We would appreciate your help in respecting our implementation of this process to ensure that our colleagues and friends who are impacted receive the respect and consideration they deserve,” he said.

Based in Washington, Dickstein also has offices in New York and Los Angeles. According to the firm, it has about 850 employees, including more than 400 attorneys.

Dickstein's core practice areas are antitrust and dispute resolution, business and securities law, corporate and finance, energy, government law and strategy, insurance coverage, and intellectual property, according to the firm.

The layoffs at Dickstein come shortly after Drinker Biddle & Reath LLP reportedly laid off attorneys in its corporate and tax practice groups in Chicago and Philadelphia. Above the Law reported that the firm laid off 22 associates on Oct. 29, though the firm declined to confirm the move.

Drinker Biddle is involved in transitioning from a year-based to a competency-based system of associate advancement. Under the new system, associates will be grouped into four levels based on whether they achieve certain competencies, instead of groups by law school class or tenure at the firm.

--Additional reporting by Shannon Henson, Liz McKenzie, Julie Zeveloff and Jacqueline Bell