Credit and financial problems are wreaking havoc with many professions today, and lawyers are no exception as their services are being terminated left and right. But rather than waste all the time and education they have invested in their chosen profession, some are branching out on their own and opening their own law offices. That said, if the economy does not improve, those ventures are unlikely to work out any better than their last jobs.
Sonnenschein, Nath & Rosenthal just laid off 37 attorneys and approximately 27 associates. Out of the 37 attorneys that were laid off, six were partners. For a law firm of that size, a layoff of so many employees is extreme. And yet, this law firm is one of the most profitable in the nation, so you can imagine how things must be going at smaller firms.
Earlier this year, Cadwalader, Wickersham & Taft reduced their US offices by 35 lawyers. The layoffs were blamed on the economy, and, in an indication that this may not be the last of the layoffs, the firm issued a statement saying they would continue to diversify their practice and try to "redeploy" some of their personnel.
Meanwhile, Ballard, Spahr, Andrews & Ingersoll cited the economy as a consideration for laying off 13 members of their support staff, and Reed Smith cut 50 legal secretaries from their firm. Rumors were also flying recently that Blank Rome laid off 20 associates; however, they denied this, saying only nine were let go after their yearly reviews.
Of course, some say that partners should take cuts in their salaries in order to keep good employees from being tossed out, but that is not likely to happen. The majority of the law firms that have not been busy are prepared to ride it out and see what happens when the economy changes.
Here is one reason that big law firms have to let attorneys go if their performances are not at a top-notch level: Most large law firms have big salary increases every year, and under normal circumstances, associates typically get their raises without fail. Part of the reason for this is the fear, on the firms' part, that they will lose the lawyers they want to keep if they fail to give raises. Under the current circumstances, then, a few heads must roll if they are to be able to continue making these pay increases on a yearly basis.
Of course, while the weak economy has a lot to do with the current situation, the large number of law students who are graduating and coming into the workforce is a factor as well. In Illinois, for example, there was some talk earlier this year of cutting back on the number of attorneys in the state's division of criminal justice — specifically, to the tune of about 13%, which would result in approximately 200 assistant state's attorneys becoming unemployed.
Yes, these are dark times for the economy in general and lawyers in particular. So for the sake of the country and all aspiring attorneys, along with those who have already spent so much time and money to become lawyers, let's hope that the economy makes a speedy recovery.
See the Top 32 Reasons Attorneys Lose Their Jobs Inside of Law Firms to learn some of the most common reasons attorneys are fired or let go from law firms.
