Nixon Peabody Confirms Earlier Layoffs, Delays First-Year Start Date and Cuts Associate Pay
The firm's latest attempt to cut costs, which have been more severe than many other law firms, comes on the heels of the firm laying off some lawyers, furloughing staff and canceling its summer associate program.
May 06, 2020 at 05:44 PM
3 minute read
Nixon Peabody's offices in Washington, D.C. Photo: Diego M. Radzinschi/ALM
Cash-preserving measures are continuing at Nixon Peabody, which confirmed today it was among a growing number of firms that are delaying the start date of incoming first-year associate classes as well as cutting associate compensation. It also confirmed for the first time specifics on layoffs and furloughs reported at the firm last month.
Nixon Peabody confirmed it furloughed 5% of its associates and 25% of its staff while laying off another 5% of associates.
The firm also said on Wednesday that it has deferred its new associates start dates and will provide them with a $10,000 salary advance. Above the Law first reported the news and said Nixon Peabody was delaying the start date until February 2021, but the firm said it has not given a specific date. It will also cut associate pay by 10% beginning May 20, with counsel seeing similar salary cuts, the firm confirmed Wednesday.
"We have deferred our 2020 fall class until we can better anticipate future client needs," the firm said in a statement. "Our firm entered 2020 in a strong financial position. By making some difficult decisions and taking action, we plan to come out of this pandemic just as strong. Every day, our attorneys are supporting individuals, businesses and communities, helping them navigate the many issues they are facing in these challenging times."
Nixon Peabody is the latest firm to announce it would be deferring first-year associate start dates as part of its austerity measures, as the legal industry works to overcome financial challenges presented by the coronavirus pandemic. Orrick, Herrington & Sutcliffe; Baker Botts; Squire Patton Boggs; Greenberg Traurig; and Reed Smith have also announced a delayed start for their incoming first-years.
Nixon Peabody is also among the growing number of firms that have altered or canceled their summer associate programs. The firm will not have a summer program this year and will instead offer summer associates a $5,000 stipend.
Read More:
From Canceled to 'Business as Usual,' Law Firms Go Their Own Way on Summer Associate Program
Summer Associate Programs and COVID-19: How Law Firms Are Responding
Nixon Peabody Keeps Mum on Reported Lawyer and Staff Layoffs
Pay Cuts, Layoffs, and More: How Law Firms Are Managing the Pandemic
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