Law Firm Layoffs Alternative: 'Cut, Redeploy'
Although there have been well-publicized associate layoffs at a number of law firms recently, many are also thinking “cut, redeploy” and finding a way to shift junior attorneys in lagging practice areas to those where business is boosted by a bad economy.
Thus, associates who specialized in private equity a year or so ago may be finding that corporate governance, bankruptcy or litigation are better niches for them right now, according to the National Law Journal.
Glad to have a job in a difficult economic era following the subprime mortgage meltdown and a worldwide credit crunch, many associates are ready, willing and able to change practice areas rather than potentially lose their jobs. Meanwhile, although starting over in a new practice area can understandably cause some jitters, good lawyers can readily meet the challenge and should be up to speed again within four to six months, at the longest, according to Jeffrey Murphy, a partner at Thacher Proffitt & Wood.
Barton Winokur, the chairman of Dechert, says law firms are reluctant to lay off associates because of the adverse public relations consequences and a fear that they will soon find themselves short of associates, once the economy improves. By redeploying associates to new practice areas, even if the attorneys aren’t as busy as they and the firm might wish, “the result will be a long-term benefit,” he tells the National Law Journal.
As discussed in an earlier ABAJournal.com post, Dechert did an apparent about-face about six weeks ago, offering 13 associates a chance to redeploy to other departments after initially announcing that the associates would be laid off.
Related coverage:
ABAJournal.com: “Laid-Off Cadwalader Lawyers Got Little Notice, But Months of Severance Pay”
ABAJournal.com: “Thacher Proffitt Warns of Associate Layoffs”
ABAJournal.com: “Clifford Chance: Laid-Off 6 Akin to Contract Attorneys”
