Day Pitney Cuts 29 Staff Members In Reorganization

By Tina Peng

Law360, New York (November 05, 2009) -- Day Pitney LLP has reportedly laid off 29 staff members as part of a staff reorganization, in the firm's third round of cuts this year.

Eight of the firm's nine offices were affected by the reorganization, legal blog Above the Law reported Thursday.

A Day Pitney representative could not immediately be reached for comment.

Day Pitney let 66 staff members go across all its offices in February. The firm said at the time that it did not expect any attorney reductions. But in May, Day Pitney said circumstances changed that forced its hand, and it laid off 20 associates and counsel.

“We deeply regret the need to take these steps,” it said in May in a memo circulated firmwide and published by Above the Law. “All of the people whose jobs have been eliminated are highly skilled professionals who have made significant contributions to the firm.”

While no specifics were given, the reductions were said to be scattered throughout Day Pitney's offices and practice areas, and each of the affected attorneys was offered a severance package, according to the memo.

“Unfortunately, the demand for legal services has continued to decline, with the result that we have found ourselves with excess capacity,” the firm said in the memo. “While no one can predict the future, we hope that, by taking these steps now, we can avoid the need for additional reductions in the future.”

In addition to the layoffs, the firm also pushed back the starting date for the incoming class of associates to Jan. 5, 2010, according to the memo.

“We will be providing each member of our incoming class a weekly stipend from Sept. 15 through Dec. 31, 2009, and are encouraging each of them to participate in available public interest opportunities,” the firm said.

On Wednesday, Dickstein Shapiro LLP confirmed that it would 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 would be notified immediately and offered a comprehensive separation package, including salary and medical coverage continuation, as well as outplacement services, according to a firmwide memo posted on 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.

--Additional reporting by Jocelyn Allison, Abigail Rubenstein and Julie Zeveloff