This could be a harbinger of rougher times to come. Last year, in November of 2007, Clifford Chance was the first firm to publically announce layoffs due to weakening economic conditions. At that time, they let go six associates in their structured finance group, which proved to be the first in a wave of layoffs at numerous firms, most notably Cadwalader Wickersham & Taft.
This latest move by Clifford Chance may likewise presage more layoffs by other firms. These 20 departures were explicitly labeled as being due to the poor economy, not any fault of the associates themselves.
The reasons given are pretty grim tidings for the legal market in general. Historically, litigation matters explode when hard times come, as firms in trouble are either being sued or are suing others. Clifford Chance said that they had expected their litigation practice to increase, but that hasn't happened. Thus, the 20 associates getting the axe. The affected associates are in the firm's New York and Washington offices.
While the laid-off associates are getting severance and some help to try to find new jobs, if Clifford Chance's troubles are once again a bellwether, look for more layoffs in litigation at other firms sometime soon.
In other words, it's probably a good time to pay down your debts, associates!
