Welcome to Lookzy.  Lookzy is the daily email newsletter that makes staying up to date as a BigLaw lawyer fun and easy (because your job often won't be).

We cover the big stories your colleagues are talking about, digests of the day's big litigation and corporate news, salary/bonus/layoff developments and interesting law firm and law school news. We keep it topical and direct so that you can go back to billing.

In today's Lookzy:

• Latest details on stealth layoffs

• Succession, in real life

• Cravath opening a new DC office

• A litigation associate's worst nightmare

WHAT TO MAKE OF "STEALTH LAYOFFS"

In this market, several firms have reportedly started doing what is known as a "stealth layoff": quiet, selective firing of associates in order to avoid the bad publicity that comes with publicly laying off employees.

According to unconfirmed reports, even prominent firms have conducted stealth layoffs across NYC, SF and Texas.  Firms which hired extensive numbers of laterals over the past two years appear to be most affected.  Kirkland, for example, was rumored to be terminating up to 200 associates globally.  Vinson & Elkins, Cooley and Sidley are other names rumored to be engaging in stealth layoffs.  Other firms, like Gunderson, have instead cut costs by deferring first year start dates to 2023.  

Despite the fear surrounding downsizing, many of the stealth layoffs appear targeted at severe underperformers.  Many associates lateraled to firms during COVID with staggering signing bonuses and guaranteed end of year bonuses, only to now be billing far below annual hours minimums (sometimes billing as low as 1500 hours annualized) and turning down work. 

Transactional associates in this position seem most at risk.  In some cases, targeted associates have first been put on a performance improvement plan, but only been given vague, unhelpful instructions as to how to improve within a x-month window, all the while being held back in terms of salary and bonus.  

Our best advice?  Start accepting most, if not all, work offered to you, be collaborative and proactive, and build rapport with partners.  If you're really worried, try to keep your options open, network, and even consider taking on restructuring work.  

Have any confirmation of layoffs, stealth or otherwise?  Reply to this email with any gossip and stay fully anonymous.  We'll take your rumors, even if hearsay, and try to verify and report back.  

ECON SNAPSHOT

The difference between special bonuses and layoffs.

THE VERDICT

Arguing today's litigation news

Musk under federal investigation.  Elon Musk is facing federal investigation over his attempted (and then litigated, and then attempted again) takeover of Twitter, according to Twitter filings. 

Presidential Subpoena.  The House Committee investigating the January 6th insurrection subpoenaed former President Trump to testify, though he is reportedly unlikely to comply.

Nikola's Trevor Milton convicted.  Nikola founder Trevor Milton was convicted of securities fraud for misleading investors in his company.

SCOTUS doesn't want to be involved.  SCOTUS rejected (in an unsigned, one sentence order with no dissents) an emergency request from Trump's lawyers regarding the Mar-a-Lago investigation into classified information.

SCOTUS release a new list of orders with no grants.  View the orders and a helpful tweet thread summary from Bloomberg Law here. 

THE DEAL

Wheelin' and dealin' today's corporate news

'Davos in the desert' kicks off. A number of corporate leaders are attending the 'Davos in the Desert', the annual Saudi-sponsored business conference in Riyadh, despite high tensions with Saudi Arabia given OPEC+ cuts.

Succession, in real life.  Rupert Murdoch is exploring recombining Fox Corp and News Corp.  News Corp's board formed a special committee to evaluate the combination "following receipt of letters from K. Rupert Murdoch and the Murdoch Family Trust". 

Grocery M&A.  Kroger and Albertsons signed an agreement to combine in a $25 billion deal, likely to face some antitrust scrutiny.

Brad Pitt's Plan B Entertainment in play.  Brad Pitt's production house ('12 Years a Slave', 'The Departed', among others) is exploring strategic options, including sale.

Another Kohl's proxy fight?  Activist hedge fund Macellum, which has long-targeted Kohl's, has threatened another proxy fight if Kohl's doesn't make changes to its board.  

When crypto goes bankrupt, lawyers profit.  Law firms the only ones in crypto making any money right now.  In Celsius' bankruptcy case, for example, Kirkland (big surprise) has already requested $2.6 million in fees for representation since July 13, 2022, just three months ago.

Bite a man's nose off, lose your job.  Beyond Meat's COO, who was suspended last month after being arrested for allegedly biting a man's nose during a fight, as left the company.

BUSINESS OF THE FIRM

Firm News: 

• Cravath signed a lease for 21,000+ sq. ft. of office space in Washington DC on K Street, the firm's first US office outside NYC and third office total.

• Baker McKenzie's net income was reported at $1.24 billion in its fiscal year ending June 30, 2022, similar to last year's net income, which was 36.7% higher than the prior year. The firm reported $3.3 billion in global revenue.

• Morgan Lewis partners unanimously voted to extend chair Jami Wintz McKeon's term to 2026, two years longer than she originally agreed to serve.

• Morrison Foerster and Durie Tangri LLP, a boutique litigation firm, agreed to combine (36 lawyers coming to MoFo).

• Littler Mendelson finally caught up with much of the rest of BigLaw and raised salaries for all US associates. 

• Markenzy Lapointe, formerly a partner at Pillsbury Withrop Shaw Pittman and now part of the federal prosecutor's office overseeing the Mar-a-Lago investigation, reported earning $905,176 in partnership income at Pillsbury. Not even a mil?

Is Jones Day evil? Vivia Chen discusses the question in a column for Bloomberg.

The number of law school applicants is down 12% compared to this time last year, according to the Law School Admission Council. The council cautioned that it is still early in the application cycle and that applicant volumes can be “highly volatile” at this time of year.

BOILERPLATE

Thoughts and prayers to the associate who filed this pleading.  

Alright, back to billing.  That's all, folks!