My own impression is that perception doesn't match reality. And only time and a steady stream of admirable behavior will fix it.

Once Latham decided to do the Layoff, they did it commendably. Six months severances was 2-3 times market, they were public (i.e., not stealth firings), and given that virtually all of the laid-off were 2-12 months into their careers, it was obvious the layoffs had zero to do with talent for the vast majority.

But none of that matters. History shows that the first firm to pull back on salary or staffing gets crucified--and of course, we did both. The followers pretty much get off with slap on the wrist, and in the end, collective rancer of industry-wide layoffs is redirected to the first-mover. That first-years bore the brunt simply amplifies the situation. All big-law associates accept that they might be forced in a new direction after 3 years, but only after they've acquired valuable skills.

In the end, Latham made 2 mistakes. First, they panicked and cut too many associates, causing the remainder to work way too hard for the past 8 months. Second, New York management should have been rebuked. They recklessly over-hired by 50% in the two-prior years, becoming the most leveraged office with the least diversified practice. And although half the layoffs were in NYC, all the offices were made to share in the pain, even if they were properly staffed. Lastly, Latham had the bad luck of getting caught in a peak growth cycle (from all it's past successes) at a time of unprecedented retraction in both corporate and Litigation--two practices believed to be counter-cyclical.

There are no magic potions to remove the dark-stain, other than a steady diet of good decisions. Lifting the freeze and making everyone whole for what proved to be a buys year was the right the thing to do, but it's just a step. You can't buy your way out. Year-end associate reviews went well, which is another good thing.

I imagine the NYC office requires the most healing, but the other offices still have good people who really believe in the culture they built. These are really good people, a true rarity in big law. All hand-selected, and unlike most, the firm never made the mistake if taking on asshole lateral partners to shore up weaknesses. Those firms that found comfort in consolidation now have to deal with prolonged culture clash, poor integration, partner & practice group envy, etc.

Latham is still very well positioned, and the associate base is young and characterized by really solid personalities. If they hold together--rather than leave in droves once times stabilize--then Latham will still be a uniquely special place to enjoy working on cutting edge deals/cases. In the end, Latham & maybe Gibson are the only national firms can rival the Wallstreet elite on work quality, but without the baggage of NYC culture.