© 2013 The Texas Lawbook.
By Natalie Posgate
Staff Writer for The Texas Lawbook
(March 5) — During the recession, Patton Boggs took pride in not laying off a single one of its employees. That streak came to an end last week when the firm let go 65 of its employees – including 12 in Dallas.
Three of the 12 laid off in Dallas were associates. The other nine were either paralegals, support staff members or secretaries.
While partners were spared in the layoffs, 18 partners firmwide are under close scrutiny this year, according to firm managing partner Ed Newberry.
If their performance does not improve, they might have to leave the firm before the end of the year. A couple of these partners are in the Dallas office, Newberry said.
The layoffs allow Patton Boggs to emerge as a much stronger competitor in an extremely difficult market for legal services, he said.
“We took a hard look at where we stand in the marketplace and we know we want to continue to be a strong competitor among the best law firms,” Newberry said. “We’re constantly asking ourselves what we need to do and our conclusions – as other firms reached… was an appropriate set of moves.”
All practice areas were affected by the layoffs both in the Dallas office and firmwide, but litigation took the biggest hit. Newberry attributed the reason for this to a “winding down” process in litigation in which many big cases are being settled.
Newberry said that the layoff decision-makers “consulted with many layers of the firm” when choosing who to let go, including department leaders, partners who worked closely with anyone under review and managing partners of every office. The main criteria when deciding whom to layoff involved the availability of work the individuals had, and in a few instances, what an individual’s performance level was.
According to Newberry, the selections for whom to layoff were all “very difficult, painful choices.”
“These are all fine lawyers, people and employees,” he said. “I’m sure [they] were sad and disappointed and I really don’t blame them because they’re all fine people and great professionals. We regretted making these choices.”
While those laid off are no longer with the firm, Patton Boggs’ internal outplacement support service will work with the former employees to help them find other jobs.
“We have a very strong culture here and we care about the people we work with,” Newberry said. “We intend to be very supportive.”
The total costs saved from the layoffs amounts to $14.7 million, Newberry said. But while the layoffs saved major bucks for the Washington, D.C.-based firm, Newberry assured that the layoffs are not at all a reflection of a cut back on new hires – especially lateral.
Some recent key lateral hires in the Dallas office include Elizabeth Ames Jones, the immediate past chairman of the Railroad Commission of Texas, and Jim Jacks, the former U.S. attorney for the Northern District of Texas.
Currently the firm’s Dallas office, which opened in 1997, has 90 lawyers.
A round of layoffs is not the only method Patton Boggs is utilizing to cut costs. Newberry said that the firm’s D.C. office recently renegotiated its lease and extended the term by 15 years to 2032. The office is also relocating its back office staff (human resources, IT and financial services) about 15 miles away to urban Virginia, where lease rates are lower.
“Major law firms have been doing what we’re doing for more than a decade,” Newberry said. “Many of them are moving [back office staff] to far locations like West Virginia, Tennessee or Ohio.”
In terms of expansion, Patton Boggs has big plans, despite the layoffs. The partnership just voted to build an office in Dubai and there is serious talk about the firm entering the Houston market.
“Our core strengths are natural for Houston,” Newberry said. “It’s a terrific marketplace and I think it would be a very nice fit for us.”
While times are still rough in the legal market, Newberry said the best strategies firms can execute to keep their heads above the water are focusing substantial time and attention to generate revenue, being strategic in lateral recruiting and remaining extremely disciplined in expense and headcount management.
As far as what it takes for lawyers to keep their jobs, he said the best strategy involves attorneys making themselves invaluable in serving clients and constantly asking themselves how they can continue to contribute to the success of the firm.
“That question of ‘how I can continue’ is the most powerful question anybody can ask,” he said. “When you ask it and answer honestly and figure out how to best contribute… it has a very profound effect and it’s very empowering.”
© 2013 The Texas Lawbook. Content of The Texas Lawbook is controlled and protected by specific licensing agreements with our subscribers and under federal copyright laws. Any distribution of this content without the consent of The Texas Lawbook is prohibited.
If you see any inaccuracy in any article in The Texas Lawbook, please contact us. Our goal is content that is 100% true and accurate. Thank you.