February 20, 2009
I was in Boston last week for the ABA midyear meeting, and the mood was grim. Conversation was centered on the economy, especially in light of the announcement that nearly 800 large firm employees were laid off on Thursday, a toll that climbed to over 1000 by the end of the day Friday, according to The National Law Journal. Anecdotal reports suggest that some smaller firms are making similar layoffs, though they’re not getting the same press.
An article in The American Lawyer titled “The Fire This Time: Thoughts on The Coming Law Firm Hiring Crisis” has some thought-provoking points. An excerpt:
If present trends continue in the big firm market, we are heading toward–you pick the cliché–a paradigm-shifting, blood-in-the-suites, terror-on-the-campus hiring and retention crisis. The “economic reset” that General Electric’s Jeffrey Immelt has tagged seems likely to force changes in the way firms recruit, pay, and/or retain their lawyers. The market for labor has changed and, for now at least, there’s no normal to which it can return.
Law firms are actively considering the prospect of pay cuts, delayed starting dates, sharply reduced offers, and more lay-offs. The carnage of Black Thursday will likely continue. This is an ugly situation made worse by the peculiar hiring schemes that were tolerable during good times but now are under serious stress. Not every firm has swung the scythe and some never will. It’s notable though that with so many firms pushing out so many people, there is little of the usual talk about how firms are endangering their cultures. For the moment they are more concerned about managing their businesses.
Do read the whole article: it’s well worth the time.
And what if you’re a laid-off lawyer? I’ll write more about that in the next few days. And I’d like to extend an invitation that I made to the readers of my newsletter Leadership Matters for Lawyers: I’m considering how I might add value specifically for you, perhaps through a monthly free teleclass or report with strategies that you can implement now to help you make your next move.
I’d like your feedback: what can I offer to help you find the next job, to make sense of what’s happening in the legal economy now, or otherwise? I can’t promise anything, but I’ll read through every response and do my best to implement some of the best suggestions. Please let a comment below (anonymous, if you’d like) or send me an email to jaf (at) lifeatthebar (dot) com. I will hold all email responses confidential.
Welcome back!
