High Demand, Low Security: Legal Tech Consolidations Create Fluid Job Market
As legal tech mergers heat up, certain jobs can become redundant. However, legal recruiters say some legal tech employees' professional background and certifications makes them a hot commodity in today's workforce.
November 04, 2019 at 11:30 AM
3 minute read
It's been a busy year for legal tech companies raising significant funding and acquiring competitors. But when companies merge, employees at all levels wait with bated breath for redundancy rounds that could cut their job.
"Everyone knows," said John Tredennick, former CEO of e-discovery company Catalyst before it was acquired by OpenText in January. "You can't go in and buy a company and expect employees will stay around. Your biggest worry is many of those employees are polishing up their résumés when the [merger] rumors hit."
Employees updating their résumé may have good reason. Legal tech recruiters said cutting employees with similar roles after a merger is common, but some ex-employees' skills are viable across the legal industry and beyond.
Legal tech recruiters noted duplicate administrative, secretarial, sales and accounting staff are most likely to be cut after mergers because, although the company is acquiring new services or products, not all the combined staff is needed to get the job done.
"Whenever two companies combine, someone at the heart of this is thinking about how they can drive revenue with fewer people," Tredennick noted.
While the road back to employment is never easy, legal tech employees do gain valuable professional skills that are viable in different sectors of legal and outside of the industry.
"If they are in operations, they can transfer to another vendor, law firm or corporate legal setting. Their familiarity with rules and laws, adhering to deadlines makes it easier to transfer into those other types of companies," said Litigation Support Careers Inc. president and founder David Netzer.
He added, "Obviously there are sometimes not enough positions to go around, you can see those type of people transferring into other industries as well."
Indeed, legal staffing and consulting solutions firm Robert Half Legal executive director Jamy Sullivan noted, "If an individual has exposure within cybersecurity, data privacy and regulatory compliance that is all at the forefront." An employee with technical knowledge and Certified Information Systems Security Professional (CISSP) accreditation, she added, "is in hot demand."
To be sure, the software developer may have the safest position after an acquisition, partly because their work creates the product. But when modules are discontinued and the acquired developers' software isn't needed, those developers might be cut, Tredennick added, and they may land in a tech industry that is light-years ahead of the legal tech space.
"There is nothing different about legal technology than other technology except many legal tech companies are running software that is 10 years in the past. Not all, but many," Tredennick said.
Tredennick advised what many legal recruiters echoed: "Develop your brand and skills. If you do that in most of these fields, if not all of them, you are going to have a lot of opportunity."
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 AllTrending Stories
- 1Gibson Dunn Sued By Crypto Client After Lateral Hire Causes Conflict of Interest
- 2Trump's Solicitor General Expected to 'Flip' Prelogar's Positions at Supreme Court
- 3Pharmacy Lawyers See Promise in NY Regulator's Curbs on PBM Industry
- 4Outgoing USPTO Director Kathi Vidal: ‘We All Want the Country to Be in a Better Place’
- 5Supreme Court Will Review Constitutionality Of FCC's Universal Service Fund
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