Multiple Staff at Sullivan & Cromwell Laid Off, Sources Say
The changes come as the firm has offered voluntary retirement packages and parted ways with several staff directors.
July 24, 2020 at 05:00 AM
4 minute read
Wall Street firm Sullivan & Cromwell has laid off multiple staff in several departments in recent months, according to six sources. The changes come as the firm has offered voluntary retirement packages and parted ways with several staff directors.
The layoffs number up to about 50 staff members over the past three months, said some sources.
The layoffs touched a variety of departments within the firm, including events, marketing and temporary workers, sources said, and laid off staff were offered a severance package of two weeks' pay for every year served at the firm.
Apart from the layoffs, many older employees were given the option of an early retirement through what the firm called its voluntary retirement program, said some sources, including one who said the number of employees given that option was around 100. Those eligible needed to be at least 55 years of age, the sources said, and have a tenure at the firm that allowed their age and service time to add up to 70.
Meanwhile, six chief or director-level personnel have also left the firm over the past several months, although it is not clear whether any of those were directly tied to the larger round of staff layoffs.
Sources said the firm parted ways with its chiefs or director's of knowledge management, global business development, internal auditing, hospitality services, legal personnel and global contracts and special projects. LinkedIn profiles for four of the six personnel show they stopped working at the firm this year, while sources confirmed the other two departures.
The six former directors or chief personnel either declined to comment or could not be reached for comment.
In an email, Sullivan & Cromwell's executive director, Karen Braun, declined to comment, citing firm policy not to comment on personnel matters.
In particular, she declined to comment as to whether any of the layoffs were part of an outsourcing deal the firm struck with HBR Consulting that pushed its many of its IT needs to the consulting firm. Sources said the technology department within the firm went largely untouched in this round of cuts.
Sullivan & Cromwell's average profits per partner ranked fourth in the Am Law 100, at $4.65 million last year. That's more than double the average Am Law 100 PEP of $2.09 million, according to ALM data.
S&C is certainly not alone in cutting back on expenses and personnel. A slew of layoffs were reported in major firms over the last three months during the pandemic, and another round may be on its way in the third quarter. Bryan Cave Leighton Paisner, for example, confirmed on July 15 it was cutting lawyer and staff positions across its global business.
According to a survey conducted in May by the National Association for Law Placement, about 10% of law firm respondents reported layoffs or furloughs for personnel in talent, recruiting, professional development or diversity and inclusion departments.
Some firms, though, are starting to roll back austerity measures as revenue performance outpaced initial expectations.
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