Davis Wright Tremaine restores some pay but lays off staff, citing 'fundamental shift'
9/1/20 REUTERS LEGAL 21:04:00
Copyright (c) 2020 Thomson Reuters
Caroline Spiezio
REUTERS LEGAL
September 1, 2020
FILE PHOTO: The offices of Fitch Ratings building appears empty in Canary Wharf, following the outbreak of the coronavirus disease (COVID-19), London, Britain, May 27, 2020. REUTERS/Dylan Martinez/File Photo
(Reuters) - Davis Wright Tremaine is easing its coronavirus pandemic-era austerity measures but also laying off nearly 40 staffers whose jobs are no longer needed, the law firm said Tuesday.
Those laid off include office services staff, legal assistants and other administrative positions, a representative for the firm said. They were already furloughed and it was not clear "when, if ever, their previous work will return," Jeff Gray, the firm's managing partner, said in a statement.
"This is the result of a fundamental shift in how we expect to operate and support our clients and lawyers going forward and not a cost-cutting measure," Gray said.
The coronavirus pandemic shuttered offices and forced lawyers to learn to work from home without in-person assistants, leading some firms to reconsider their long-term administrative staff needs, industry sources have said. At least one other firm, Katten Muchin Rosenman, has said it laid off staff this year because the pandemic changed its long-term needs.
Katten and Davis Wright Tremaine were among dozens of large law firms that implemented austerity measures such as pay cuts and furloughs earlier this year because of the pandemic, and both have recently started walking those measures back.
Davis Wright Tremaine on Tuesday said it is restoring 50% of the salary reductions it made in May and increasing the third quarter distributions for equity partners because of better-than-expected financial performance.
The Seattle-based firm in May cut salaries by 15% for non-equity partners and C-suite level executives, by 12% for associates, counsel and of counsel and between 6% and 10% for staff based on salary level, with no reductions for those below $60,000. It furloughed about 8% of its staff.
Some of those furloughed staff members will be brought back to the firm, Gray said Tuesday.
Davis Wright Tremaine has more than 550 lawyers in eight offices.
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