Biglaw Layoffs Hit Shearman & Sterling: What it Means for Lawyers and Staff

The layoffs of 12 associates and 26 staff members at Shearman & Sterling’s New York office are a sign that the Biglaw market is still feeling the effects of reduced client demand due to changing economic climates. The firm, which has seen slower growth in both revenue and profits over the last 20 years compared with its peer firms, had a disappointing bonus season last year — making this announcement even more difficult to swallow.
 
But Shearman & Sterling is not alone in their struggles: many major law firms throughout the country have implemented similar workforce reduction measures including Cooley LLP, Goodwin & Gunderson, and Kirkland & Ellis.
 
This is yet another reminder that while many sectors of the economy are recovering from recessionary pressures, Biglaw remains an uncertain environment with countless firms continuing to respond to fragile client demand with cost-cutting measures — including layoffs. With more losses expected before operations return to normal levels, it remains unclear how long this situation will persist.
 
The Impact on Associates and Staff
 
The most immediate impact from these layoffs will be felt by those who received pink slips: 12 out of Shearman & Sterling’s associates and 26 out of their staff were reported as having been released due to budget cuts. For these individuals, navigating job transitions during an uncertain employment landscape can be daunting — thankfully there are resources available to help them through this challenging time.
 
Above The Law reaches out to those affected by these changes through email or text (646-820-8477) with a vast network of resources and tipsters across the legal industry for support and guidance during job transitions. Whether it’s through open layoffs or stealth layoffs, voluntary buyouts, or something else entirely, those transitioning out of their roles can reach out for assistance.
 
Looking Towards Recovery
 
There may be some light at the end of the tunnel for people currently employed in Biglaw — if reports of a possible merger between Shearman & Sterling and Hogan Lovells prove true — but only time will tell how this affects both current and future employees as well as market conditions. It could provide stability amidst the tumultuous world of Biglaw employment while providing both firms with an expansive new base of clients. In any case, Above The Law continues to stay tuned for news about what comes next for legal professionals everywhere. In the latest round of Biglaw layoffs, Shearman & Sterling has made the difficult decision to reduce its workforce in the US. The New York office, which operates one of the largest and most well-known practices in the country, was not immune to the economic impact of COVID-19 and market conditions.
 
The reductions affected both staff and associates at Shearman & Sterling, with 12 associates and 26 staff members reportedly receiving pink slips. This is unsurprising for those familiar with Biglaw market conditions, where transactional practice areas have been the first to feel the effects of reduced client demand due to changing economic climates.
 
According to a spokesperson from Shearman & Sterling: “After careful consideration, like many other leading law firms, we have implemented a limited workforce reduction which includes 26 team members in business services and 12 of our legal personnel, focused mainly on transactional practice areas most affected by current and projected market conditions.”
 
This is yet another reminder that while many sectors of the economy are recovering from recessionary pressures, Biglaw remains an uncertain environment with countless firms continuing to respond to fragile client demand with cost-cutting measures — including layoffs. With more losses expected before operations return to normal levels, it remains unclear how long this situation will persist.
 
The recent layoffs at Shearman & Sterling are only the latest bad news for the firm. While it has been one of the biggest names in Biglaw legal representation and consulting, its growth pales in comparison to other peer firms over the past two decades — leading to budget cuts and a disappointing bonus season last year.
 
But Shearman & Sterling is not alone in their struggles: Cooley LLP, Goodwin, and Gunderson, as well as Kirkland & Ellis, have all had to cut associates from their staff headcount recently too. Even more law firms are considering staffing reductions due to economic pressure from reduced client demand due to COVID-19.
 
With these changes, many legal professionals must negotiate difficult job transitions — but thankfully, they don’t need to do it alone. Above The Law reaches out to those affected by these changes with a vast network of resources and tipsters across the legal industry for support and guidance. Whether it’s through open layoffs or stealth layoffs, voluntary buyouts or something else entirely, those transitioning out of their roles can reach out via email or text (646-820-8477) for assistance.
 
And possibly just in time, Shearman & Sterling announced plans to merge with Hogan Lovells — a move that could provide stability amidst the tumultuous world of Biglaw employment while providing both firms an expansive new base of clients. Only time will tell how this affects both current and future employees as well as market conditions, so stay tuned!