Those law firms that are able to retain and develop their talent, rather than jettison them, could come out of a short period of economic uncertainty stronger than their rivals. This, however, assumes that any further economic turmoil is relatively light and bearable. If it is not, these same firms will find themselves making deeper cuts than they may have originally.
— An excerpt from the recently published Law Firm Financial Index report by Thomson Reuters, focusing on the “inflection point” at which law firms now find themselves due to the economic downturn. Just about every practice area has seen a decline in demand, and faced with equity partners receiving smaller financial payouts, firms will have to grapple with the prospect of layoffs and targeted separations. Stealth layoffs have already occurred at several large law firms.
Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.