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Biglaw And The Dreaded Stealth Layoff: It’s Happening Again – Above the Law

With
news
of
law
firm

hiring
freezes

and

outright
layoffs

at
top
Biglaw
firms,
we
knew
it
wouldn’t
be
long
until
another
sign
of
the
financial
times
emerged.
It
was
just
yesterday
that
we
learned
of
one
top
firm’s
decision
to

defer
the
start
date
for
its
incoming
associates

due
to
demand
slowing
down
“significantly.”

Now
that
deferrals
are
upon
us,
we
have
to
wonder:
Is
this
the
canary
in
Biglaw’s
coal
mine?

Top
Am
Law
firms
may
yet
implement
additional
austerity
measures
when
it
comes
to
controlling
their
attorney
headcounts,
but
they
know
just
how
bad
the
publicity
is
when
they
choose
to
conduct
layoffs
en
masse.
No
Biglaw
firm
wants
their
brand
name
to
become
a
layoff-related
verb
(this
happened
to
Latham
when
the
firm

laid
off
440
people

in
February
2009).
The
way
to
avoid
all
the
negativity
is
through
the
sneak
attack
of
stealth
layoffs.

Stealth
layoffs
are
the
disturbingly
popular
method
used
by
Biglaw
firms
to
cull
the
associate
(and
partner)
herd.
For
those
who
might
be
hearing
the
term
for
the
first
time,
stealth
layoffs
allow
firms
to
cut
headcount
without
confirming
that
there
were
any
financially
based
layoffs.
Firm
frequently
couch
the
reductions
in
performance
review
terms
that
coincidentally
happen
in
the
midst
of
a
downturn

whether
economic-
or
demand-related

often
making
those
let
go
doubt
their
lawyering
skills.
By
their
secretive
nature,
they
can
be
challenging
to
confirm
in
specific
numbers,
but
insiders
slowly
find
out
something
is
amiss.

So,
are
Biglaw
firms
using
stealth
layoffs
right
now?
Based
on
some
of
the
tips
we’ve
received,
we
certainly
think
so.
Firms
are
using
these
stealth
layoffs
as
a
way
to
save
face
and
cut
costs
at
the
same
time,
and
we’ll
likely
be
seeing many
more
of
these
in
the
future.

Help
us
help
you.
Please
keep
Above
the
Law
in
mind
when
attorneys
are
suddenly
let
go
and
the
firm
insists
there’ve
been
no
layoffs.

If
your
firm
or
organization
is
reducing
the
ranks
of
its
lawyers
or
staff,
whether
through
open
layoffs,
stealth
layoffs,
or
voluntary
buyouts,
please
don’t
hesitate
to
let
us
know.
Our
vast
network
of
tipsters
is
part
of
what
makes
Above
the
Law
thrive.
You
can email
us
 or
text
us
(646-820-8477).

If
you’d
like
to
sign
up
for
ATL’s
Layoff
Alerts,
please
scroll
down
and
enter
your
email
address
in
the
box
below
this
post.
If
you
previously
signed
up
for
the
layoff
alerts,
you
don’t
need
to
do
anything.
You’ll
receive
an
email
notification
within
minutes
of
each
layoff
announcement
that
we
publish.



Staci ZaretskyStaci
Zaretsky
 is
a
senior
editor
at
Above
the
Law,
where
she’s
worked
since
2011.
She’d
love
to
hear
from
you,
so
please
feel
free
to

email

her
with
any
tips,
questions,
comments,
or
critiques.
You
can
follow
her
on

Twitter

or
connect
with
her
on

LinkedIn
.

Enter
your
email
address
to
sign
up
for

ATL’s
Layoff
Alerts
.