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Unfiltered Volume II: What’s a Lawyer to do?
If you are a lawyer, you likely keep up with the latest on the bloodbath that has engulfed the Biglaw industry. The horrible turn of events has affected the lives of many, including many close friends of mine. Now, I can understand why the partner ranks choose to lay off. With the economic downturn, people have become less and less litigious (take that with a grain of salt). Less lit means less business for Biglaw, and lower revenue without a steady and foreseeable amount of work. The natural reaction is to cut staff to an appropriate level. These are what I call the “tangibles” of the situation.
But there are plenty of other factors that make these sweeping layoffs irk me. Partner profits for many large law firms have increased ,though it is true that others have reported lower PPP. The increases to each partner make sense financially. Partners work hard and pay in to the firm, investing time and money. As such, they ought to be rewarded. But in an economy like this, you would think that the selfish ego-centric mindset would take a backseat to the bigger picture. So what if you made a bit more money this year, as a result of your bonus, your firm just canned a baker’s dozen of other associates just so you could reap the rewards of THEIR hard work. (C’mon, as hard as partners work, they can’t function without their precious associates) And now they are gone. You have just pissed off a large number of attorneys, and while some may be understanding in these troubled times, I am sure others are fuming at these reported numbers.
Some firms are revoking their offers to the ‘09 class, and some are even cancelling their entiresummer associate programs. Yet, rumblings also reveal that certain firms spent way too much on lavish and luxurious outings on the company dime. From what I gather, Biglaw management has no idea how to curtail spending in the right areas (cut back on the frills, get back to doing good solid work without the two hour lunches, company outings, etc) and instead falls back to simply firing people. A number of first year associates have been thrown to the wind here, all without good reason. Here’s an idea, how about letting the first years survive intact, up to a performance review. While you’re at it, trash the lawyers who just don’t produce. Ask older partners to retire (if they are that old and have been partner for that long, they ought to have a nice size retirement account set up by now) and do the honorable thing and let the new generation do its thing. Cut associate salaries, because honestly getting paid $160,000 off the bat is ridiculous for an attorney who just graduated from law school. And rather than being fired, I’m sure many would jump at the chance to take a salary reduction to a reasonable level rather than lose their jobs outright. Instead, by cutting off first years, Biglaw seriously hampers the careers of these young and talented (hopefully) attorneys.
Further, these layoffs affect the ENTIRE legal industry. The market becomes further over-saturated with a talented pool of lawyers, and only a certain amount of jobs to go around. As if it wasn’t bad enough to begin with, the myriad of unemployed attorneys out there now have a bunch of one-time Biglaw hotshots to compete with. This isn’t a complaint so much as it is a simple observation. I for one will be seriously reconsidering my path here, as the entire legal industry has left me jaded. Perhaps it’s time to open up shop on my own and take a chance. Maybe all of us should band together, start our own giant firm and run these bigger firms out of town. We can undercut everyone! Get a few people with a handful of years of practical experience to lead the charge, sprinkle in some new bar admittees, and we could have ourselves a party.
Good luck to those affected. Keep an open mind, a watchful eye, and your wits sharp. It’s time to test your mettle.
UPDATE: Here is more reading material for the interested crowd.
If you are a lawyer, you likely keep up with the latest on the bloodbath that has engulfed the Biglaw industry. The horrible turn of events has affected the lives of many, including many close friends of mine. Now, I can understand why the partner ranks choose to lay off. With the economic downturn, people have become less and less litigious (take that with a grain of salt). Less lit means less business for Biglaw, and lower revenue without a steady and foreseeable amount of work. The natural reaction is to cut staff to an appropriate level. These are what I call the “tangibles” of the situation.
