When law firms of all sizes were laying off in Silicon Valley, Jones Day didn't. There's more. It went on record saying that it didn't anticipate any reductions-in-force [RIFs] there in the future.
Unlike other successful BigLaw firms, Jones Day seemed to be invulnerable, even as the downturn was deepening. It knew what it was doing, as evidenced by wins in lead paint, both with the former paint and the current toy industries, and in tobacco. It wasn't showy. It was and is accessible. At the Rhode Island lead paint trial [November 1, 2005 - February 22, 2006], Jones Day attorney Mickey Pohl, representing Sherwin-Williams, was the first lawyer to reach out to me "the blogger." And the firm was and is shrewd enough to deal cooperatively with the media, e.g. this blog.
Now, and this is scary, Jones Day blinks. In Abovethelaw.com, Elie Mystal reports that the law firm has announced salary freezes for all legal support personnel and staff. That will remain in effect until June 30, 2010. In addition, the leaked Jones Day memo says, "No Year End Payments or discretionary bonuses will be paid in 2009" for those two categories.
Of course, the Jones Day memo, like the memos on compensation issued by most leaders in BigLaw, is upbeat and highlights the silver lining in the new cost-efficiency and ramped-up attention focused on performance. That rehtoric has become a rite of passage. But one wonders what follows that rite of passage? Has the firm now developed to the point that it will have the confidence in its brandname to allow layoffs. First that could happen to staff, then associates, then plain-vanilla and equity partners.
The smart money says: Watch Jones Day. Yeah, keep our eyes open for that next possible move. Then we will come up with a new trend analysis for all of BigLaw and the New Barbarians like virtual firm Rimon taking it on.
Notice: Anyone losing their employment in the Pittsburgh, Pennsylvania branch of Jones Day can have their resume, cover letter and presentation coaching done pro bono by me. I started my corporate writing career in downtown Pittsburgh, a stone's throw from Jones Day's suite of offices.
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