Ropes & Gray Offers Voluntary Buyouts to Staff Members

Ropes & Gray is offering voluntary buyouts to U.S. staff members as the legal industry faces the economic effects of the Covid-19 pandemic.

Several firms have battled the financial turbulence caused by the virus with pay and salary cuts as well as by limiting partner draws and in some cases furloughing or even laying off some part of the workforce. But Ropes & Gray, is the first firm publicly known to have turned to voluntary separations.

According to an internal firm memo originally shared on Above The Law, employees who choose a buyout will be offered one week of severance pay per completed year at the firm, plus an additional four weeks, with a minimum of 12 weeks and a maximum of 30. Ropes & Gray later confirmed the authenticity of the memo, which was sent by the firm’s chief of human resources.

The buyouts at Ropes & Gray are only being offered to business support staff, and not to any attorneys, according to the firm.

Ropes & Gray will continue to pay its portion of medical, dental and vision insurance premiums through the end of 2020, the firm said.

“Although our business is strong and resilient, we expect the global pandemic and its economic implications to affect the way we work now and for the foreseeable future,” the memo said. “We also know that some of you, because of personal situations and concerns beyond the workplace, may wish to leave the firm at this time. We want to provide an avenue for you to do that if you choose.”

Employees have until June 3 to apply for a buyout, and most departures are expected to take place between June 19 and August 3, according to the memo.

It’s been a rough spring for the legal industry, as each week more Big Law firms are announcing cost-saving reductions.

Last week, Hogan Lovells and Mayer Brown announced that they would be cutting attorney pay in response to coronavirus impacts.

Other firms that have cut staff and attorney pay include Cadwalader, Arent Fox, Baker Botts, and Baker Donelson.

In addition to pay cuts, Womble Bond Dickinson furloughed and laid off members of its staff. Both Goodwin Procter and Husch Blackwell also reportedly turned to layoffs in response to the virus crisis.

Seyfarth Shaw furloughed 10% of its U.S. employees for 90 days, and Sheppard Mullin furloughed more than 30 staffers who are unable to do their jobs from home.