WORLD Law Direct Forums
Home > WORLD Law Direct Forums > FORUM INFORMATION > Law News > Behind the Sonnenschein Layoffs: Pushing for Profitability

Behind the Sonnenschein Layoffs: Pushing for Profitability

This is a discussion on Behind the Sonnenschein Layoffs: Pushing for Profitability within the Law News forum, part of the FORUM INFORMATION category; The Law Blog caught up today with Elliott Portnoy (pictured), chairman of Sonnenschein, to ask about the firm’s firing of ...

Consult Your Own Personal Lawyer Now!
Reply

 

Thread Tools Search this Thread Rate Thread Display Modes
Old May 28th, 2008, 05:40 PM   #1
News
 
WSJ Law Blog's Avatar
 
Join Date: Mar 2008
Posts: 1,862

Default Behind the Sonnenschein Layoffs: Pushing for Profitability



The Law Blog caught up today with Elliott Portnoy (pictured), chairman of Sonnenschein, to ask about the firm’s firing of 37 lawyers, and 87 other employees. (Reported on Above the Law and later here on our blog.)

Portnoy was frank in discussing the move.

Sonnenschein laid off lawyers whose practices have slowed, he says, to sustain the firm’s profit margins and overall profitability. It takes financial heft to pay competitive salaries for top lawyers, he says, and the firm has been focused heavily on partner recruiting. It hired 42 lateral partners last year, and is on pace to exceed that number in ’08. To hunt for big game, in other words, it can’t afford to carry underperformers.

“Business as usual isn’t an option, and we have to take the steps necessary to make sure we are competitive for talent,” Portnoy says. “A small group of firms are positioning themselves to pull away from the pack” in terms of profitability, “and we intend to be in that small group.”

This sort of frank talk still counts as novel in the legal biz. Sure, firms are much more hard-nosed than in the bygone era: firings and demotions are common, as is the all-consuming fixation on average profits per partner. Yet, capitalistic machinations are not often put out in plain view.

This is not the first time that Sonnenschein (and Portnoy) have been unabashed in their quest for better financials. Earlier this year, as we reported, Sonnenschein rescinded employment offers to summer clerks and incoming associates in its Charlotte office, which has been hurt by the market downturn in mortgage-backed securities (see article). And last year, it fired some trusts & estates partners, a practice some firms are sloughing off because it’s more rate sensitive and less lucrative than other practices.

“We are not doing this below the radar screen,” Portnoy says of the latest firings. Perhaps his only artful turn of phrase was to say the firm “separated,” not fired, lawyers. It’s a term that is new to our ears.

Portnoy, though, still perhaps lags Mayer Brown’s chair James Holzhauer in the frankness department. In discussing Mayer’s firing and demotion of 45 partners last year, Holzhauer told the Law Blog: “We want to drive our stock price up.”

Photo: Sonnenschein

Last edited by top_admin; May 29th, 2008 at 07:02 AM.
WSJ Law Blog is offline   Reply With Quote
Reply

Bookmark & Share



Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

| More

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Format Your Messages
Add Forum to Google Toolbar
Forum Jump

Similar Threads

Thread Thread Starter Forum Replies Last Post
Ken Russo pushing the latest scam! Unregistered Internet HYIP Scams 9 Aug 5th, 2009 12:12 PM
The PM Roundup: Sonnenschein Goes Lockstep, More . . . WSJ Law Blog Law News 0 May 21st, 2009 09:40 PM
And the First Week of Spring Brings . . . More Layoffs WSJ Law Blog Law News 0 Mar 26th, 2009 04:40 PM
layoffs and pregnancy Unregistered Hiring, Firing, Wrongful Termination 1 Feb 5th, 2009 10:45 AM
Law Firms and Layoffs: Who Are the Most Vulnerable? WSJ Law Blog Law News 0 May 9th, 2008 08:30 PM


Top crime attorneys


All times are GMT -4. The time now is 04:11 AM.