If you think that Biglaw, which laid off employees during the pandemic, showed a certain degree of economic weakness, then this theory has been fully proven.According to Law.com reportAfter the COVID-19 pandemic raged, 15 Biglaw companies experienced substantial increases in their revenues or profits after layoffs and/or attorneys (we are talking about 5% or higher). The following is what happened to some Am Law 200 law firms, which have reduced their positions but are still among the best.
As early as April 2020 Ackerman fired his staff and lawyers. They saw a record revenue in 2020, an increase of 6.5% to $467.4 million. In a statement about this dichotomy, a spokesperson expressed doubts about market uncertainty and “prudent fee management”:
A law firm spokesperson said in an email: “Like many law firms, we made business decisions at the beginning of the pandemic to deal with the uncertainty faced by the legal industry.” “Akerman ) The success in 2020 is the direct result of our team’s outstanding work and careful expense management for customers in many business areas and departments in the United States and internationally.”
The billion-dollar company Reed Smith (Reed Smith) will be a landmark moment in 2020, with each equity partner’s profit growth of 15.9% and revenue growth of 5.1%. It also laid off 19 jobs from its London office. Sandy Thomas, the global managing partner, talked about the lost job:
“Of course, we don’t like this, but you must reconcile the continuous needs of the corporate form with your position at any particular point in time.”
Hogan Lovells announced In October, employees in the United States and Mexico decreased by 4%. During the same period, the company’s total revenue increased by 2.8%. Last year, the profit of each equity partner increased by 30.8%, although this was due to a 23% drop in the company’s equity partner ranking. However, the company points to more challenging potentials in the future:
A firm representative pointed out CEO Miguel Zaldivar (Miguel Zaldivar) He said in a statement in October that the company has “performed well in the past few months” and leads in revenue. “However, we believe that there will still be uncertainty in the market in 2021, so we must be in a good position to get through the potentially more challenging period,” Zardiva said at the time.
Procopio, Cory, Hargreaves and Savitch laid off 13% of their jobs last year. They also saw a 7.6% increase in revenue and a 24.8% increase in partner profits. But Chief Operating Officer James Perkins said that a large part of the increase in net income comes from PPP loans, and they expect this loan to be forgiven. All in all, business leaders say that the goals they cut have not been forgotten:
“This is something we need to get through. We took these three steps quickly before many of our peers, and then after we got PPP funding approval, we balanced all the funds…
“We did hire a couple [staffers] Going back to later this year, but in general, we have no one else coming back. “Chief Operating Officer Perkins said. “I hate to say that, but we did not really miss them. This is what we see in the use of technology, which allows our lawyers to staff ratio to increase. “
McDermott Layoffs By 2020, both employees and lawyers will be ranked like this. However, their performance is amazing, total revenue increased by a staggering 17.9%, which is equivalent to a 25.6% increase in the profit of each equity partner. Company Chairman Ira Coleman (Ira Coleman) classified the layoffs as part of the “moderate policy” and said the company did not do any “big things.” Well, to those who were unemployed during the pandemic.
“You can conduct business based on the information at the time. When the situation becomes difficult, you will focus more on everything, cut expenses, and not do any improvisations or major events,” Chairman Ira Coleman (Ira Coleman) Said in a statement. “We have adopted a very gentle approach. We know that, whether it is a good year or a bad year, our partners have to bear the risks of this year.”
Dickinson Wright cut Although revenue increased by 2.9% and profit per partner increased by 14.9%, the number of employees in the company increased by 3% last year. Dickinson CEO Michael Hammer said the pandemic is an “opportunity” for the company. He continued: “This is indeed an opportunity to solve the problems of poor performance and overcapacity in most companies,”
“When you enter the ocean of uncertainty, we know that we have been with these people and can solve these problems in a humane and transparent way, and then we will no longer cut expenses,” Hammer said: “We don’t want to reach We reduce the level of people who are needed for the sake of economics.”
Davis Wright Tremaine’s total revenue increased by 7.5%, and the profit of each equity partner increased by 8.7%. But in September The company announced that the vacation will be a layoff of some employees. The company’s managing partner stated that eliminating these positions is not part of the cost-cutting measures:
“Redundancies are not a cost-cutting measure,” managing partner Jeff Gray said in a statement. “This is due to a fundamental change in our future business and the way we support our clients and lawyers. We have begun to study these changes. It includes assessing our workforce structure and what roles and capabilities we need to maximize Support our clients and lawyers well.”
Saul Ewing Laid-off lawyer And employees, the profit of each partner increased by 14.4% last year. Managing partner Barry Levin (Barry Levin) said that the layoffs are “anticipated reduction and development of customer demand.”
Levine said last month: “It has transformed from the traditional lawyer-secretary-paralegal model to a variety of other non-lawyer professionals who can provide really important insights to help client relationships from the perspective of project management and pricing experts. .”
Kathryn Rubino (Kathryn Rubino) is the senior editor of “Above the Law” and serves as the ” Jabot podcast. AtL recommender is the best, so please contact her.Send email anytime she was Provide any tips, questions or comments, and follow her on Twitter (@凯瑟琳1).