Sources have said that Thacher has laid off somewhere between 30 and 60 associates, and there have been numerous defections of lawyers from various practice groups. Even partners (junior ones, to be sure) are said to be at risk of "de-equitization." The trouble comes from the securitization group, which, like most other financial groups in the legal industry, is suffering right now. Without that income, the firm is struggling.
In addition, the incoming first-year class has had their start date delayed until October of this year, and it may need to be pushed back until January of next year. Litigation associates that are incoming are still starting on time, though. The firm is apparently saying that if you can get a better deal, take it — which doesn't sound at all promising.
The firm is denying that it is planning to close a large office as well — its office in White Plains, NY.
Whatever the truth is, one thing is clear: Thacher, Proffitt & Wood is going through a rough spell. The firm will likely survive, though it may shrink dramatically.
The big question is whether other large firms are going to follow suit. Is Thacher the first big harbinger of disaster ahead?
