BigLaw pay cuts and layoffs are likely to multiply, experts say

[DGUtley]

Large and midsize law firms responded to economic pressures caused by the COVID-19 pandemic this week with pay cuts, layoffs and lower partner payouts. And it’s not over yet, observers say. Three of the latest law firms to announce pay cuts are Arent Fox; Curtis, Mallet-Prevost, Colt & Mosle; and Loeb & Loeb, Above the Law reports here, here and here. According to Above the Law tipsters, Arent Fox cut salaries for counsel and nonequity partners by 30%, and for associates and staff by 25%. The blog also says equity partner distributions have been cut by 60%. An Arent Fox spokesperson said measures were taken to put the firm in a strong position.

This is brutal.

https://www.abajournal.com/news/arti...sfmc_u=6351481



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[Peter1469]

I saw that. This seems worse than the 2008-09 recession for these law firms.

[DGUtley]

Those law firms have zero flexibility to respond to these types of things. I have competed with those firms for business. They charge more for their paralegals than we charge for our partners. How they get people to pay that is beyond me.


I geared up to try a lawsuit in January 19 against one of those DC firms. They brought three lawyers to Ohio. It was just me. For 6 years they treated me like a piece of Pelosi. We sat down and started picking the jury. The lead guy - that wouldn't give me the time of day before that precise moment - interrupted my voir dire and asked the judge if he could speak to me in the hallway. The judge looked at me and shrugged my shoulders. We walked into the hallways and they came off their $42,000,000 demand and said that they'd take $2,000,000. Yes, 42-2. I replied 'Let's go try this $#@!'. He replied "My guy will take a million" (I had a million and I had orders not to try the case if they got to a million) I told him: "They'll never pay that, let me see what I can do" I called Pam and told her I'd be home for dinner and settled the case for $600,000. I ran into his client a few months later and he told me that they had $1,300,000 in fees. BIG LAW!! They had to milk it for every last nickel.

[Peter1469]

Those law firms have zero flexibility to respond to these types of things. I have competed with those firms for business. They charge more for their paralegals than we charge for our partners. How they get people to pay that is beyond me.


I geared up to try a lawsuit in January 19 against one of those DC firms. They brought three lawyers to Ohio. It was just me. For 6 years they treated me like a piece of Pelosi. We sat down and started picking the jury. The lead guy - that wouldn't give me the time of day before that precise moment - interrupted my voir dire and asked the judge if he could speak to me in the hallway. The judge looked at me and shrugged my shoulders. We walked into the hallways and they came off their $42,000,000 demand and said that they'd take $2,000,000. Yes, 42-2. I replied 'Let's go try this $#@!'. He replied "My guy will take a million" (I had a million and I had orders not to try the case if they got to a million) I told him: "They'll never pay that, let me see what I can do" I called Pam and told her I'd be home for dinner and settled the case for $600,000. I ran into his client a few months later and he told me that they had $1,300,000 in fees. BIG LAW!! They had to milk it for every last nickel.

I hear you. I have been in court or administrative hearings where it was me against a Big Law firm that assigned one partner and 2-3 associates to go against me.

[RichardMZhlubb]

I’m a partner a big international law firm. We took about a 20% hit on total partnership compensation in 2009. I’m pretty sure that this will be far worse but nothing has been announced yet.