Howrey is planning to cut at least 20 and possibly as many as 30 partners from the firm, The Am Law Daily reports. Chairman Robert Ruyak confirmed the rumored cuts in separate interviews with The Am Law Daily and U.K.-based Legal Week.
As previously reported by The National Law Journal, Howrey had a down year in 2009—after its record revenue of 2008, which was largely driven by several large contingency payments. In 2009, Howrey’s profits per equity partner fell 35%, to about $846,000. The firm’s gross revenue fell from $573 million to $480 million, marking a decline of 16.3%. Ruyak said the firm had seen greater fluctuation in its year-to-year revenue because of a increased focus on alternative billing arrangements.
The Am Law Daily reports that one former partner, who preferred to remain anonymous, said that Howrey management had a "credibility gap" during his time at the firm. He said Ruyak told partners that the firm's 2009 financial performance would be better than it ultimately proved to be.
Ruyak took responsibility for the firm's 2009 performance at an all-partners meeting on Jan. 19, The Am Law Daily reports. In that meeting, held by videoconference, Ruyak explained the decline in profits and vowed to restore the firm to financial health, in part by continuing to hire good laterals
Read the full report here.
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