Will Law Firms Begin Serial Layoffs? Not if They Can Help It, Experts Say
Orrick’s layoffs yesterday were the second in less than four months. Will other law firms that have already laid off lawyers follow suit?
Not if they can avoid it, experts told the Recorder.
Orrick cut about about 100 associates and of counsel and 200 staffers yesterday, following cuts of 40 associates and 35 staffers in November.
Consultant Wendy Tice-Wallner, the former chairwoman of Littler Mendelson, told the Recorder that law firms dislike implementing a series of layoffs because of the impact on morale. “You don’t want people waiting for the next shoe to drop,” she told the publication. “The ideal situation is to not be doing this very often and to know where you want to be six months or a year from now.”
Another consultant, former Thelen chairman Richard Gary, agreed with Tice-Wallner. “My guess is that firms are trying to get all of the bad news out of the way at one time and not be revisiting workforce levels every month or two,” Gary told the Recorder. “You may see another round in midyear if there continues to be overcapacity, which is the reason for these layoffs. But I don’t expect it to be done on any kind of regular basis.”
