Tracking Associate Cuts and Layoffs: How Some Law Firms Are Managing Excess Capacity
From Goodwin, Stroock and Cooley's attorney layoffs to performance-review cuts at other firms, here's Law.com's reporting on staffing adjustments in the legal industry.
January 12, 2023 at 02:35 PM
5 minute read
Law Firm ManagementIn the wake of lower demand in the legal industry and a softer deal market, some law firms are faced with excess attorney capacity and slowing productivity. Here's Law.com's reporting on how law firms are making staffing decisions while grappling with demand challenges:
Stroock Latest Big Law Firm to Lay Off Staff, Attorneys
Stroock & Stroock & Lavan has laid off nine attorneys and 18 business professionals as the firm attempts to rightsize for an anticipated drop in demand in 2023 and potentially beyond.
Goodwin's Layoffs Spotlight Balancing Act Between Associate and Partner Preferences
More details are emerging about the number of people laid off, as well as the firm's rapid hiring in the last few years.
Goodwin Cuts Attorney, Staff Positions Amid Demand Slump
The Am Law 20 firm announced Thursday it would lay off attorneys and professional staff members across multiple offices in the U.S.
Stealth Layoffs Bad for Business, Increase Risk of Unwanted Departures
"Managing layoffs poorly can lead to a second round of departures — and those are the people you don't want to leave," said Ross Fishman of Fishman Marketing.
Laid-Off Lawyers Face Hard-Hit Job Market but Opportunities Remain
The incoming associate class at Cooley numbered more than 100 this year. The influx of first-year associates in Big Law will be a challenge for those just laid off.
Cooley Skirts WARN Act, Offers Severance Packages Benefiting Junior Associates Over Seniors and Staff
The law firm offered three months of severance pay to all associates and a minimum of one month for staff after laying off a combined 150 employees earlier this month.
What's Next for Cooley's Laid-Off Attorneys and Staff?
Corporate associates in Palo Alto and San Francisco were especially targeted by the latest round of layoffs.
Cooley's Layoffs Reveal Dangers Facing Other Sector-Focused Law Firms
One lesson that can be gleaned is the importance of building broad corporate practices and offering a range of industry expertise, according to industry observers.
Cooley Lays Off Attorneys and Staff, Taking 'Painful' Steps to Address Overcapacity
A majority of the lawyers affected are associates, along with a few counsel, said a person familiar with the cuts. No partners were laid off.
New York Law Firms Take Heavy Profit and Revenue Hits
Attorney cuts may come soon at New York law firms. "The numbers just aren't there to support the staffing," said a Wells Fargo consultant.
Stealth Layoffs Obscure Big Law's Exposure to Silicon Valley Losses
As billable hours dry up in venture capital and emerging companies practices, law firms create a pretext for more cuts to correct overhiring.
Law Firms Are Letting Productivity Slide, Remembering the 'Lost Generation' of Lawyers
Despite reports of elite law firms trimming ranks, head count continued to trend up across the industry through the third quarter.
Gunderson Associates Out of a Job After Dip in Billable Work
Two rounds of cuts affected about 30 associates this fall at Gunderson Dettmer, according to sources in contact with affected individuals, as demand falls for emerging companies and venture capital work.
Cooley's 'Performance-Based' Layoffs Also Hit High-Achievers
Sources close to the firm said Cooley let go of associates with positive performance reviews due to a lack of work in practices such as venture capital and capital markets.
Associates' Performance Reviews Are Influenced by Market Conditions
Kirkland's associate cuts highlight the fact that performance evaluations never take place in a vacuum, according to recruiters and consultants.
Kirkland & Ellis Trims Associate Ranks Following Performance Reviews
Economic headwinds and the drop in deal work have generated concerns that law firms will apply stricter performance review standards, industry observers say.
In Associate Ranks, Slowdown in Demand Could Mean 'Cleanup'
Law firms are using the softer demand environment to address weak spots that were difficult to cut before.
The Performance Review Season Talent May Dread
Law firms, recently hungry for as many lawyers as they could find, are now looking to trim ranks. But rather than using layoffs, law firms are managing people out through the review process.
As Gunderson Defers Associate Class, Will Others Follow Suit?
Gunderson's move may now give more freedom for others to defer incoming classes, several observers said.
Staff Layoffs at Fish & Richardson as Secretary Roles 'Transition'
Leaders at the firm confirmed the elimination of the litigation secretary position. At least nine employees lost their jobs, according to one source.
Payroll Cuts or Normalization? Law Firms Scale Back Recruiting as Recession Fears Loom
The current order of business is to trim talent acquisition costs and focus on building core competencies, but "stealth layoffs" remain a possibility
Hiring Pauses, Stealth Layoffs at Top 50 Law Firms Signal Industry Austerity
Cooley has reportedly implemented a freeze on hiring associates, while sources say Reed Smith is responding to dipping profitability in lower performing regions by easing out senior lawyers who lack substantial books.
Big Law Will Likely 'Rightsize' Attorney Ranks Through Attrition, Performance Reviews
While mass layoffs are unlikely at the moment, law firms will manage ranks by taking more subtle measures to balance slower demand and increased payroll expenses, analysts say.
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