(Photo: Zach Warren/ALM) Stage at ILTACON 2018 outside Washington, D.C. Photo: Zach Warren/ALM.

The International Legal Technology Association (ILTA) is not immune to the financial troubles hitting both the economy at large and the legal technology industry more specifically. On Wednesday, the industry organization announced that it has laid off eight of its 41 full-time employees, and furloughed five others.

ILTA CEO Joy Heath Rush told assembled media that the layoffs come primarily from back-office functions that do not face the general association population or business partners. The furloughs, meanwhile, are focused on in-person events for which there is no current business function, with no end date for the furloughs currently scheduled.

The association has told affected employees privately, but is not making the names or positions of affected employees public at this time. ILTA will be reaching out to any of its affected volunteer groups in the coming days.

Rush said the layoffs will not affect planning for ILTACON 2020, which is still scheduled to proceed between Aug. 23-27 in Nashville. She did also note that ILTACON will have virtual components to the event, telling the media, "ILTACON will happen, it may not just look like what we expect."

The layoffs come as many trade associations have been hit hard by the COVID-19 pandemic, and Rush noted that ILTA makes a substantial portion of its revenue from live events. Furthermore, while the organization originally applied for government assistance from the CARES Act, it ultimately is not eligible for small business aid, as it is registered as a 501(c)(6) organization.

Rush believes that today's staffing changes puts ILTA in a solvent position, saying the organization currently has a "manageable" cash flow. But as a hedge, ILTA is currently focusing its efforts on how it can continue to move virtual under the new paradigm.

The organization conducted its first fully virtual event last year, and its upcoming LegalSEC Summit on June 15-17 will also be virtual using Communiqué conferencing technology. As ILTA examines options for ILTACON and other conferences, Rush noted that integrating virtual technologies will open the organization's events to a wider audience that may not regularly travel to legal technology shows. "With a virtual option, that will make it accessible to a larger number of people."

Dawn Hudgins, ILTA's vice president of brand and events, agreed, adding that while "nothing will replace face to face contact," the organization would like to utilize its upgraded technology stack in an increased way: "Going forward, the landscape of ILTA will change, where hybrid events will become a norm."

This year's 40th edition of ILTACON is scheduled to take place in the Gaylord Opryland Hotel in Nashville, one of the world's largest hotels and conference centers. The Gaylord Opryland Hotel has been closed since March 26 due to COVID-19 concerns, and Ryman Hospitality Properties CEO Colin Reed told investors at the time that only 5% of hotel workers remained active following temporary leaves and furloughs to cut expenses. There is currently no timetable for the hotel to reopen.