Katten Muchin Rosenman, a leading law firm based in Chicago, has unveiled a set of strategic measures in response to evolving economic conditions and shifting demand for legal services. These measures include layoffs for lawyers and professional staff members and delayed start dates for some incoming associates. The firm acknowledged the challenges faced by law firms across the United States, making it the second firm to take such actions recently.
While Katten boasts a lawyer roster comprising approximately 700 legal professionals, the layoffs will impact only a tiny number of lawyers and business support professionals, amounting to less than 5% of the firm's workforce. Katten has prioritized talent retention and service excellence by reallocating team members to practice groups with a higher demand for legal expertise. This strategic reallocation was done in response to the declining demand for legal services in certain areas.
The legal industry is witnessing a trend of law firms grappling with reduced demand and evolving client needs. Armstrong Teasdale, another well-established law firm based in St. Louis, Missouri, has also experienced similar challenges. With around 800 attorneys, Armstrong Teasdale has confirmed layoffs affecting 24 staff members and 11 lawyers, representing approximately 6% and 3% of their respective groups.
The decisions taken by Armstrong Teasdale to reduce staff were the result of a comprehensive evaluation of the firm's organizational structure. The firm aims to enhance operational efficiency and streamline its functions through these changes. The decision to let go of lawyers was based on assessing productivity and performance metrics.
The legal industry is facing challenges, and several prominent firms have responded by implementing strategic initiatives to address financial pressures and optimize their operations. Notable firms, including Reed Smith, Orrick, Herrington & Sutcliffe, Cooley, Dechert, Goodwin Procter, and Bryan Cave Leighton Paisner, have all taken steps to reduce lawyer headcount and staff.
Aside from layoffs, some law firms have also chosen to defer the start dates of incoming lawyers. Katten, for example, announced a partial deferral of the start date for a segment of its incoming class of associates. The demand within specific practice areas influenced this decision and will see the affected associates commencing their roles on February 1, while the rest of the cohort will begin in October as originally planned.
