If you have been reading Legal Week and The Lawyer you will have seen numerous stories about even the very biggest law
firms cutting staff, partners and associates — but there are signs of resurgence now.
News of big firm layoffs have gone from a few early drips and drabs just months ago to a daily torrent, with
firms cutting staff and attorneys by the dozens.
Canadian
firms cut some staff and lawyers but overall it was not the bloodbath seen in foreign markets.
Not exact matches
When former CN Rail CEO Paul Tellier told his
staff that making a profit was necessary for the future survival of the
firm, Amernic and Craig castigate him for ignoring the impact rail service
cuts would have on small Canadian towns.
Ad tech
firm Verve has quietly
cut staff in a «rightsizing» that includes its sales VP Uber investor Pishevar takes another shot — this time legal — at Benchmark
Roughly half the
staff at Odgers Berndtson Canada, one of this country's biggest search
firms, resigned (or were
cut loose, depending on whom you believe).
Iberdrola and Gas Natural, along with Vodafone's unit in Spain, asked
staff to turn off computers or
cut off Internet access in case they had been compromised, representatives from the
firms said.
These
firms can then juice profit margins by
cutting staff.
United States private equity
firm Kohlberg Kravis Roberts is understood to have made fresh soundings to major institutional shareholders in Treasury Wine Estates as the wine company prepares to
cut about 100
staff by June 30.
United States private equity
firm Kohlberg Kravis Roberts is understood to have made fresh soundings to major institutional shareholders in Treasury Wine Estates as the wine company prepares to
cut about 100
staff.
In a statement denouncing the
cuts to services, the CEO of the Trading Standards Institute, Leon Livermore, said: «We have a situation where trading standards teams in local councils are tasked with holding multi-million-pound
firms to account, with just a handful of
staff.»
Big
firms are able to afford expensive advisors, consultants and lawyers, while HMRC has few
staff members with deep knowledge of tax affairs and stands to lose employees and funding as spending
cuts bite in the new year.
Donohue said instead of
cutting resources to teachers and support
staff who keep schools running, the state would be better off eliminating the financial perks school districts have been lavishing on law
firms they hire to represent them against their workers.
FSB research shows that 44 per cent of small
firms would take on more
staff if the government
cut national insurance, so such a measure would produce an environment for growth and help create much needed jobs.
Firms either
cut corners by reducing costs, hiring cheap and inexperienced
staff and failing to invest in infrastructure — or they just cancel the contract, as A4e has done.
We will accept it if and only if they pay their taxes — rich corporations and individuals - if and only if those
firms are paying their employees decently... and we must ensure that as we reform welfare and we
cut taxes we protect the hardest working and lowest paid - the retail
staff, the cleaners who get up in the small hours or work through the night because they have dreams for what their families can achieve... The aspiring, striving, working people that Labour is leaving behind.
With fewer investors buying and selling individual stocks, brokerage
firms have been forced to
cut research
staffs, which had long supplied information about small companies in hopes of generating trading commissions.
If a broker were really reputable, you'd expect them to provide you with prompt and satisfactory answers but a
firm that
cuts corners by employing untrained
staff or that lacks insufficient methods to contact them can be pretty frustrating to deal with.
In contrast, while many large legal employers are
cutting back on
staff and salaries, there remain tremendous opportunities for law / business innovators — whether in solo law practice, legal outsourcing, virtual law offices, innovative medium and small
firms, or non-law jobs in startup companies and nonprofits.
Setting aside for a moment the question of what kind of «partner» bails on his colleagues in a crisis in order to make more money, this is the harsh reality facing a lot of
firms, many of which must have concluded that
cutting «less productive»
staff, associates or even partners is an existential choice.
And don't forget the
firms that
cut only or mostly
staff.
BLM has begun a redundancy consultation affecting 29 Southampton
staff in the latest round of job
cuts for the
firm.
This week on the legal - affairs podcast Lawyer2Lawyer: The failing economy is having an impact on law
firms, and not just in the U.S. Firms are cutting staff and scrapping bonuses — and some law firms are even collap
firms, and not just in the U.S.
Firms are cutting staff and scrapping bonuses — and some law firms are even collap
Firms are
cutting staff and scrapping bonuses — and some law
firms are even collap
firms are even collapsing.
Their mission is to apply the lessons learned from years of litigation practice and courtroom battles to establish a
cutting edge, creative, and focused trial
firm employing state of the art technology, enthusiastic
staff, and creative and driven attorneys.
Earlier today, the
firm announced it is set to
cut up to 200 support jobs from its UK offices — the equivalent of 18 % of its 1,100 UK support
staff.
McGrigors has announced a large - scale cost -
cutting programme that will see partners taking a reduced share of the
firm's profits,
staff agreeing to unpaid leave, and a firmwide salary freeze.
The
cuts, which affected paralegals and administrative
staff, were made in the
firm's re-mortgage division.
If law
firms are
cutting staff or practice areas, counsel may have no choice but to look elsewhere, which is not necessarily what they prefer to do.
Last month the Scottish
firm announced a large - scale cost -
cutting programme that will see partners taking a reduced share of the
firm's profits,
staff agreeing to unpaid leave, and a firmwide salary freeze.
Dickinson Dees has
cut 17
staff from its re-mortgage division as the credit crunch takes its toll on one of the UK's leading regional law
firms.
Outside of the partnership, the
firm is asking all
staff to take two weeks» unpaid leave at some point between June and the end of September - equating to a pay
cut of around 5 %.
Last November the
firm announced that it was
cutting 17
staff from its remortgage division.
Law
firms responded to the economic downturn by laying off lawyers and administrative
staff,
cutting salaries, instituting hiring freezes, reducing and in some instances (temporarily) abolishing their summer associate programs — which also resulted in staggering unemployment numbers for law school graduates.
Maclay Murray & Spens is set to
cut up to 30 jobs after announcing a redundancy consultation with both legal and support
staff at the
firm.
The Herald reports that the
firm profited from its flexible - hours policy «by
cutting turnover of professional
staff to 5 percent in the latest year, half the industry average.»
A May 2012 report by Altman Weil Inc., «Law
Firms in Transition,» found that with the exception of support staff, non-equity partners were the most likely position American firms will cut in the next
Firms in Transition,» found that with the exception of support
staff, non-equity partners were the most likely position American
firms will cut in the next
firms will
cut in the next year.
Cross is the latest partner to leave KWM's European offices amid a wide - ranging restructure that has seen the
firm move from 17 practice groups to three,
cut around 15 % of its European partnership and axe 37 support
staff.
The failing economy is having an impact on law
firms, and not just in the U.S. Firms are cutting staff and scrapping bonuses — and some law firms are even collap
firms, and not just in the U.S.
Firms are cutting staff and scrapping bonuses — and some law firms are even collap
Firms are
cutting staff and scrapping bonuses — and some law
firms are even collap
firms are even collapsing.
«Closings, layoffs come to U.S law
firms» «Wilson Sonsini
cuts 113 jobs, freezes associate pay» «White & Case lays off 70 associates» «Orrick lays off 40 attorneys, 35
staff» «Cooley Godward fired 50 lawyers and 60... [more]
This week, Above the Law reported that, following major
staff attorney
cuts at Skadden, Arps, Slate, Meagher & Flom and Covington & Burling, law
firm Paul, Weiss, Rifkind, Wharton & Garrison has now let go of as many as 45
staff attorneys since November 2008.
An ATL tipster says that the
staff attorneys are being
cut so that the
firm can «have some work for 80 or so first years that just started who are already doing nothing but doc review and who should expect to be doing nothing but doc review for the foreseeable future.»
This round of
cuts comes less than a year after the
firm eliminated 25 members of its secretarial
staff last April.
No surprise, law
firms cut costs — mostly support
staff and space — to push the cost line down and preserve margin.
The
firm also announced
cuts of 250 nonlegal
staff, including paralegals.
Gibson Dunn & Crutcher today
cut 36
staff positions at the
firm's nine US offices.
According to the spokesperson, the
firm has no plans to
cut any attorneys or additional
staff at the present time.
Several national
firms with offices in the Denver area, such as Faegre & Benson, Ho gan & Hartson and Cooley Godward Kronish, went through attorney or
staff cuts in the first quarter as layoffs accelerated.
Talented lawyers will continue to gravitate to
firms that trust their lawyers to do good work without counting hours and that are willing to share the pain in bad times, while
firms that fire
staff,
cut associates and de-equitize partners whenever the going gets rough will increasingly struggle.
By 30 April 2009 most law
firms had substantially completed a round of cost
cutting which saw trainee solicitors deferred, associates and support
staff made redundant and partners either exited or reduced to a fix share or consultancy roles.
In the «new normal,» corporations and their in - house legal
staffs exert downward pricing pressure on law
firms and vendors for a number of reasons, including the new emphasis on cost -
cutting and efficiency, the transparency of law
firms» pricing and service offerings due to the ubiquity of the Internet, and the end of law
firms» ability to convince clients that they and not the clients had all the answers.