CWT has stated that the volatility of the financial markets has affected the capital markets, thereby affecting many of their major clients and thus the law firm itself. CWT has also said that some lawyers would simply be "strategically redeployed" to other areas.
However, in addition to the aforementioned layoffs, other layoffs have also quietly been going on at CWT, and even though the firm is now saying that this was inevitable because of the financial markets' instability, it should be noted that Cadwalader, Wickersham and Taft was named one of the most secure firms to work at in 2006 and 2007. This means that in a matter of a few short months, that ostensible security has diminished dramatically. Layoffs suddenly became imperative, according to the firm, because of the markets' instability.
There has been some talk, however, that the partners could have restructured such that they didn't have to let people go (or least so many), but that profitability was deemed more important. Regardless of whether that's true or not, the reality is that even a job at a venerable law firm such as CWT isn't secure anymore.
In addition to CWT actually laying people off, it appears, as suggested above, that many of the firm's attorneys have willingly tendered resignations in order to go elsewhere. This may mean trouble for the law firm itself, independent, to some degree, of any troubles in the financial markets.
What the Layoffs Might Mean to You
Because CWT has been thought of as such a solid presence in the industry, attorneys have long thought that if they got jobs there, their futures were secure. This year has shown, however, that even the most (supposedly) secure law firms are at risk in these uncertain times. It would behoove you, then, to think about what you can do to protect yourself.
Being Proactive Is Good
As the old adage goes, "It's always easier to find a job when you have a job." So have your resume primed and ready, and if you hear of a good opportunity, consider throwing your hat in the ring even if you're happy where you are. You never know what might happen. If your job happens to be pulled out from beneath your feet (and it could happen), or if you hear noises to that effect, you can and should be proactive. Quietly put your name out there, and, if you need to go elsewhere, company loyalty shouldn't mean anything over your own job security right now. Take a better offer if one comes along.
Being Complacent Is Not So Good
Even if you think your job is particularly secure, make sure you keep your resume polished and ready just in case you need it. If you need to, go back to school online, at night, or via correspondence course, and get some extra training in an area that you're not particularly versed in and that's more "recession-proof," such as litigation, bankruptcy, or another field that's going to need a lot of lawyers for the foreseeable future. It's true that capital markets have taken a hit, but that doesn't mean that there's not plenty of work to be done by members of the legal profession.
Finally, Ride It Out
Regardless of precisely what ails CWT, it's certainly true that the economy itself is in the doldrums right now in general. So, like most other Americans, you may have to tighten your belt and simply ride things out until we're settled into what can be called a "new normal." With the recent turmoil on Wall Street, the crash of the housing market, and general belt-tightening throughout the country, it isn't just the legal industry that has to be careful. Once the economy recovers from these major shocks, and once the elections are over and the next administration is in place, things all over the country should begin to get better. Until then, use your common sense, stay ready for change, and take advantage of any opportunities that come your way.
