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Law360 (April 20, 2020, 11:06 PM EDT ) Amid the ongoing efforts by firms to cut costs, Fox Rothschild LLP is slashing pay for attorneys and staff who earn above $100,000 but not currently considering cutting staff or attorneys, while both Quarles & Brady LLP and Dentons' U.K. branch are furloughing personnel in addition to reducing pay, the firms confirmed to Law360 on Monday.
Fox Rothschild confirmed Monday that it is not considering any layoffs or furloughs but that starting in May, equity partners will reduce their monthly draws by 10% to 20%, and all attorneys and staff earning more than $100,000 a year will see their pay reduced between 10% and 15%.
The firm also is pushing back the start of its summer associate program and will have new associates begin in January 2021, instead of this year.
"We recognize that throughout the country, in every industry, companies both large and small are facing an unprecedented set of challenges, circumstances and choices," the firm said in a statement. "We have taken these measures in the spirit of retaining our attorneys and staff and remaining nimble as the impact of the pandemic unfolds, while at the same time sharing the potential burdens of the crisis across all constituencies of the firm."
"We are confident these measures will enable Fox Rothschild to emerge from the pandemic stronger than ever while continuing to provide our clients with the services and support they need throughout these trying times," the firm added.
Meanwhile, Dentons confirmed Monday that its U.K. and Middle East division will furlough more than 100 business staff members and secretaries, saying that the decision was made to furlough workers who are "unable to effectively work remotely" or who work on teams that don't need full capacity. The furloughed workers are being rotated, and the furloughs are intended to last through the end of May.
The division has also paused partner distributions, with no stated date for when they might resume, calling it a "preemptive measure."
"Clearly this is a period that is causing unprecedented challenges," the firm said in a statement. "While our work patterns have held up reasonably well so far, all the economic indicators point towards an unprecedented contraction of global GDP over the coming months."
Quarles & Brady is also reducing both pay and personnel. Equity partners cut their quarterly draw for April by 30% and are taking a 20% cut to biweekly draws, the firm confirmed Monday. Non-equity partners making more than $200,000 will also take a 15% pay cut, and those making less will see a 10% pay cut, according to the firm.
The firm added that is has also furloughed "a small number of employees."
"Quarles & Brady entered this period of disruption in a strong financial position with leading practices serving key industry sectors," managing partner Michael Aldana said in a statement. "But given the unprecedented nature of the global crisis, we have taken steps to respond appropriately to the current economic climate."
The news follows a slew of announcements from other firms about their own efforts to cut costs. On Friday, Seyfarth Shaw LLP, Hogan Lovells, Clyde & Co. LLP, Foley Hoag LLP, Snell & Wilmer LLP and Stoel Rives LLP also announced pay cuts, personnel cuts or both.
--Editing by Alanna Weissman.
Update: This story has been updated with additional information about Quarles & Brady's cost cutting measures.
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