Adopting COVID-19 Cuts, Law Firms Balance Image and Economics
Firms are applying communications lessons from the Great Recession as they deliver bad news during the coronavirus pandemic.
April 21, 2020 at 06:18 PM
5 minute read
The original version of this story was published on The American Lawyer
The COVID-19 pandemic has taken the biggest industrywide toll on law firms since the Great Recession, with many of the same unfortunate hallmarks: layoffs, furloughs, compensation cuts and deferred classes.
But even as firms echo their response to that crisis, they are also showing they learned from the experiences of a decade ago, including the negative effects of delivering cuts unevenly, clumsily or with unnecessary secrecy.
There's no one-size-fits-all communication strategy when cuts are required. But many firms have appeared in recent weeks to be signaling compassion, embracing (relative) transparency and sharing sacrifices across lawyers and staff. That can help make even painful cuts less harmful for a firm's internal morale and outside reputation, experts say.
"There is no boilerplate so long as the firm is remaining true to their core values," said Molly Levinson, founder and CEO of The Levinson Group, a strategic communications firm with offices in Washington, D.C., and New York. "There is no exact equation beyond prioritizing people at this moment. The most important piece is that they prioritize their people and act in their best interest."
Levinson said firm communications reflect the values of a firm, and if the firm wants to be perceived as engaged with and supportive of its employees, transparency is key.
"Are you saying the same things to your employees that you are saying to the media?" Levinson queried. "Are you demonstrating action by looking at the big picture and making cuts on other things so you can save jobs?"
If done properly, she said, communicating even "bad" news can reflect positively on the firm.
"I think a firm that is communicating its values, underscoring its commitment to its people and its hard work for its clients is helpful. Transparency is always helpful," she said.
Kathryn Rubino, a former associate at Cahill Gordon & Reindel and Wilson Sonsini Goodrich & Rosati and now a senior editor at legal trade publication Above The Law, said that she has seen a change in the way firms are getting their message out to both employees and media outlets compared with the Great Recession, when she was laid off from Wilson Sonsini.
"Firms are a lot more open than in 2009," Rubino said. "The overwhelming majority are providing statements when we send inquiries to them. There are of course some firms that don't respond, but they are fewer and further between."
Rubino also said that unlike in 2009, when layoffs were a first line of defense, most firms are looking to pay cuts and furloughs to offset revenue losses. And while that may obviously be a matter of different economic realities, it also sends a different signal to lawyers and staff.
"The main issue with austerity is discontentment," she said. "You want to set the tone that everyone will end up hearing. If you treat your people well, that gets back to folks."
The lesson is even more true now than it was a decade ago, she said. Ubiquitous social media platforms allow employees to share information instantly and widely, and firms have come to understand that reality.
"Some firms were very much stunned in 2009 because they didn't expect their practices to see the light of day," she said with regard to the coverage of the industry's austerity measures during that time. "There was a lesson there. People are seeing that everyone is sharing information more than ever before. If you are unaware of that and rumors spread, then you are not on top of your communications game."
That means not only communication with the firm's employees, but also with the broader market, said Deborah Farone, a former communications and business development chief at Cravath, Swaine & Moore and Debevoise & Plimpton and founder of strategic legal marketing firm Farone Advisors.
"Firm leaders are communicating more openly with lawyers and staff, and most are speaking with the media with greater candor," Farone said in an email. "They are also applying thought-out planning as to how to convey these decisions. In the past, the communications aspect of these decisions was often an afterthought."
She said that in her experience advising firms, the level of transparency is significantly greater than it was a decade ago, with more firms actively seeking out media relationships to help shape the narrative of their actions.
"Leaks hurt," she said. "You don't get a chance to speak your mind and it may look like you are hiding something."
|Read More
Pay Cuts, Layoffs, and More: How Law Firms Are Managing the Pandemic
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllDavis Polk Lands Spirit Chapter 11 Amid Bankruptcy Resurgence
Companies' Dirty Little Secret: Those Privacy Opt-Out Requests Usually Aren't Honored
Ballooning Workloads, Dearth of Advancement Opportunities Prime In-House Attorneys to Pull Exit Hatch
What Practices Are Driving Law Firms’ ‘Remarkable’ Performance in 2024?
4 minute readLaw Firms Mentioned
Trending Stories
- 1The Distribution of Dangerous Products Via Online Marketplaces
- 2The Products Liability Case Against Tianeptine: The Deadly ‘Dietary Supplement’ Found at Your Local Store
- 3The Evolving Landscape of Joint and Several Liability in Pa.: A Post-'Spencer' Analysis
- 4A Deep Dive Into the Product-Line Exception in Pennsylvania
- 5When Personal Injury and Family Law Collide
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250