Credit: ALM

Between large groups switching firms, mergers and other combinations, Pennsylvania law firms have seen plenty of changes lately, both in the state and beyond.

Looking at head count alone, two Pittsburgh-born international firms saw the greatest number of moves from December 2018 to December 2019. For one, that meant a net loss of lawyers firmwide, including several dozen partners, as its global footprint shrank. For the other, the associate population swelled as the firm implemented a few key strategic moves and continued to grow key offices worldwide.

Partner Defections from K&L Gates

As ALM reported earlier this fall, K&L Gates has experienced a steady stream of departures in 2019, following several years of weak financial performance.

According to updated lateral move data from ALM Intelligence, the number of defections has continued to grow: The global firm has seen a net loss of 123 lawyers in the last 12 months, as of Dec. 8, including a net loss of 82 partners.

K&L Gates had lawyer head count of 1,756 in 2018, ALM data shows, indicating that the firm shrank by roughly 7%.

Breaking that down by job title, the firm saw 113 partners leave and only added 31 partners. It saw 183 associates depart, while it hired 158 associates. And 79 other counsel left the firm, while 63 joined.

A number of those departures were in Australia, where more than two dozen former K&L Gates lawyers launched a new labor and employment law firm this fall. Another large group was in Poland, where the firm sold off its Warsaw office, saying farewell to 85 lawyers and staff.

The firm's Pittsburgh headquarters saw 11 partners, 19 associates and four other lawyers defect. Nine partners, 12 associates and five other lawyers left in London.

Asked about the head count declines, a spokesman for K&L Gates said in a statement: "K&L Gates has actively managed headcount over the past few years at all levels to ensure appropriate talent to meet client demand in an efficient and effective way."

The firm further explained: "For example, the firm determined to close its Warsaw office, and effectuate other separations, while adding strategically in a number of practices and jurisdictions. The firm is pleased with the results of these efforts, and the enhancement of its ability to service the needs of clients across its extensive platform."

Associate Ranks Grow at Reed Smith

Reed Smith opened a Dallas office and added a net 31 partners in the past year, according to ALM Intelligence data. It also secured approval from the Solicitors Regulation Authority in the U.K. to move to an alternative business structure and expanded its office space in Dubai.

But the bulk of its lateral movement—a net gain of 206 lawyers over the past 12 months, according to ALM Intelligence data—was at the associate level. The 2019 Am Law 100 lists Reed Smith's total lawyer head count at 1,544, indicating a 13% increase.

The firm hired 216 lawyers at the associate level between December 2018 and this month, while only 68 left, according to ALM Intelligence, making for 148 additional associates firmwide.

Asked about the new lawyers, Casey Ryan, global head of legal personnel at Reed Smith, said in a statement: "The firm has invested significant resources into creating programs that attract and retain lawyers at all stages of their careers. Junior lawyers find the firm's commitment and involvement in technology, which drives our business ahead, to be incredibly attractive. That coupled with our Associate Life initiative, a constantly evolving program to respond to the needs of developing lawyers, and our Wellness Works program, puts us in a strong recruiting position."

Among Reed Smith's most notable areas of growth was in Dallas office, where the firm opened a new office in May and already has around 30 lawyers. The firm also saw net gains of 30 lawyers in New York and 28 in London, two of its key locations. Although it was founded in Pittsburgh, Reed Smith's largest office is in London and its largest U.S. office is in New York.

Other offices with head count gains in the double digits, according to ALM data, were Philadelphia, Houston, Chicago, Miami, San Francisco and Los Angeles. Another was Dubai, where Reed Smith moved into a larger office space this year and brought on 11 more lawyers.