Reed Smith, a prominent global law firm, recently announced a series of layoffs affecting attorneys and staff members, reflecting a trend seen in various large firms over the past year. The Pittsburgh-founded firm stated that it has made "a limited number of reductions," impacting less than 2% of its workforce. The spokesperson conveyed this information on Wednesday, and the affected workers were notified on Friday.
Explaining the rationale behind the layoffs, the spokesperson highlighted a decline in demand for legal services across the industry. According to anonymous sources cited by The American Lawyer, the reduction affected approximately 30 lawyers and 20 staff members in practice areas such as corporate and bankruptcy.
Similarly, Orrick Herrington & Sutcliffe, another major law firm, announced on Tuesday that it would lay off about 40 associates and 50 staff members, constituting roughly 6% of its global workforce. Orrick also disclosed that it had postponed the start date for incoming first-year associates, a decision echoed by at least two other technology sector-focused law firms.
Other prominent law firms, including Cooley, Dechert, Goodwin Procter, and Bryan Cave Leighton Paisner, have also taken measures such as layoffs of attorneys, staff, or both since November. These actions stem from the firms' need to adapt to a decrease in demand for legal services, as the previously flourishing global M&A market has experienced a cooling-off period.
Reed Smith, housing approximately 1,700 lawyers, underwent a leadership transition this year when Alexander (Sandy) Thomas, the former global managing partner and executive committee chair, stepped down to pursue a new role at a nonprofit organization. Casey Ryan, who previously served as the firm's global head of legal personnel, assumed the top leadership position on March 1. Earlier this month, the firm announced the remaining members of its new senior management team.
