Contrary to the shiny picture often painted by salary hikes and bonuses that have been dominating Biglaw news lately, not all is bright in the world of Biglaw. An industry update from The American Lawyer indicates that top Biglaw firm K&L Gates is carrying out associate layoffs in at least four of the firm’s locations: Chicago, Boston, Washington, and Pittsburgh.
The underlying reason for these layoffs, it appears, is a lack of billable hours. A quote from a legal recruiter, insisting on anonymity, underscores this fact: “The person I talked to was totally blindsided and shocked… It was a lack of work; that was the explanation they got.”
However, K&L Gates doesn’t view these layoffs as a sign of trouble but as part of normal operational decisions. The firm’s representative highlighted the organization’s sound financial health and explained that every year the firm manages headcount based on “personnel performance, client demand and related reviews,” which usually results in certain “personnel decisions.” According to the statement, “The firm is performing quite well, with year-to-date revenue up strongly over last year, which was itself a record revenue year for the firm.”
Exact details regarding the scope of the layoffs are yet unclear. Above the Law, which reported this news, sends its best wishes to everyone who unexpectedly finds themselves looking for work in light of these layoffs.
In conclusion, it is crucial for professionals navigating this landscape to remember that despite Biglaw raises, layoffs are still a significant issue in the legal industry.