Nixon Peabody Keeps Mum on Reported Lawyer and Staff Layoffs
The Massachusetts firm, whose head count and revenue dipped in 2019, has taken some of the most drastic cost-saving measures in response to the coronavirus pandemic.
April 09, 2020 at 04:37 PM
2 minute read
As the list of law firms that have slashed compensation, withheld pay or laid off staff has increased in the last week, Nixon Peabody has reportedly taken some of the most drastic measures yet: furloughing a quarter of its staff and parting ways with some of its nonpartner attorneys.
The firm last week furloughed about 25% of staff members, effective April 6, until further notice, according to an anonymous tip published by Above the Law, which broke the news. Days later, the blog reported the firm was also cutting 10% of its nonpartner attorneys, half through layoffs providing three months of health insurance, the other half via furloughs, presumably with full benefits.
According to ALM data, there were 289 nonpartner lawyers at the firm in 2019, meaning 28 or 29 Nixon Peabody attorneys will now be out of work.
Although Above the Law and other news outlets have been reporting for days about the layoffs and furloughs, Nixon Peabody has stayed quiet so far and has not confirmed it has taken these measures. The firm did not respond to multiple requests for comment about the cuts.
While many law firms by now have reduced partner compensation and furloughed some staff, the head count reductions at Nixon Peabody are among the most drastic measures a large law firm has taken to combat the negative effects the coronavirus pandemic has had on the economy. The firm's financials dipped in 2019, with gross revenue decreasing by nearly 5% and net income decreasing more than 11%. Firm chairman and CEO Andrew Glincher attributed the dip to a windfall contingency fee in 2018 that rocketed the firm to its best-ever financial year, but was an outlier that couldn't be matched the following year.
Nixon Peabody's head count also decreased in 2019, with big groups departing to Kilpatrick Townsend and DLA Piper.
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