According to multiple sources familiar with the firm, K&L Gates has recently reduced associate ranks in several major U.S. markets, including Chicago, Boston, Washington, and Pittsburgh. However, a representative for K&L Gates declined to comment directly on the layoffs, instead providing an explanation for the general reason for headcount reduction. The American Lawyer reported on these developments.
In a statement, the firm’s representative said that K&L Gates manages headcount based on “personnel performance, client demand, and related reviews,” resulting in “personnel decisions.” They assured that “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.”
The magnitude of the job cuts in these four cities is not immediately known. With Pittsburgh being the firm’s second-largest office worldwide, according to ALM data, and Chicago, Boston, and Washington also among the firm’s five largest U.S. offices, these layoffs could have a significant impact.
Furthermore, the decision seems to have caught many by surprise. As one legal recruiter, who spoke on the condition of anonymity, said, “The person I talked to was totally blindsided and shocked,” adding that a lack of work was the explanation provided by the firm.
Current listings indicate a low level of hiring for associates in the U.S., with only one position listed on the firm’s website. This circumstance likely reflects the challenge many large law firms face: managing associate headcount amid shifting client demand and lawyer performance, particularly in light of 2021’s unprecedented levels of associate hiring and ensuing salary wars.
Other major law firms have experienced similar workforce reductions earlier this year. Pittsburgh-based Reed Smith confirmed it was cutting its global workforce by 50 lawyers and staff due to a “reduced level of demand for legal services across the industry,” a trend reflected in decisions taken by other major firms such as Orrick Herrington & Sutcliffe, Goodwin Procter, and Silicon Valley law firms Gunderson Dettmer Stough Villeneuve Franklin & Hachigian and Cooley. (Refer to this American Lawyer article for more details.)
Despite these reported reasons, the motivation behind firms letting go of associates is not always clear-cut. Sometimes, performance reviews are cited as a pretext for downsizing lawyer ranks, as occurred with such cuts at Ropes & Gray, Goodwin Procter, and Kirkland & Ellis earlier this year according to further reporting from The American Lawyer.