Nixon Peabody Lays Off Some Furloughed Workers As Big Law Cuts

Nixon Peabody has turned some of its earlier furloughs put in place due to the coronavirus pandemic into permanent layoffs, a firm spokesperson confirmed Thursday.

Spokesperson Allison McClain said a memo was circulated to the firm on Aug. 12. The memo confirmed that Nixon Peabody, like several other Big Law firms, has opted to reduce the size of its workforce as the virus continues to affect the economy and keep physical firm offices shuttered. The number of laid off staff was not specified by the firm.

Other major firms that have recently confirmed layoffs include Skadden Arps Slate Meagher & Flom, Baker McKenzie, and Davis Wright Tremaine.

Nixon Peabody furloughed about 25% of its staff members in April, and then either laid off or furloughed about 10% of its non-partner attorneys.

“Given we will not be back in our offices at full capacity for the foreseeable future, there are certain staff positions that are no longer needed in a remote work environment. As we continue to align our business with the needs of our clients, we have decided to eliminate these staff positions,” a Nixon Peabody statement said.

As firms grapple with the ripple effects of Covid-19, there has been a steady drip of layoffs, including Skadden which confirmed Thursday it would let go 4% of its professional staff in the United States. Earlier this week, Baker McKenzie said it would cut 6% of its workforce, and Davis Wright Tremaine confirmed it was laying off some 8% of the staff it furloughed in May.

Like several other law firms, Nixon Peabody has also rolled back some of the salary cuts instituted in the spring due to the pandemic.

McClain noted that the firm temporarily reduced staff schedules and salaries to 80% in May. “A few months into this schedule change, we recognized that people are very busy and we made the decision to restore many staff members to a 100% schedule and base compensation effective August 31,” she said.

Other firms including Davis Wright Tremaine also are rolling back some of the salary reductions instituted last spring. Baker McKenzie said it intended to return salaries in North America to previous levels at the beginning of next year. Other firms, including Kelley, Drye & Warren also have said they will restore pay cuts made to counter the pandemic’s economic effects.