BigLaw Cuts: How They are Done and Why They Don't Work


The anticipated severe drop in BigLaw partnership

net distributable income has become "old

news," from rumors of flat revenues and cost cutting

measures reported last November, 2008. Layoffs are

now relegated more to a statistical chart of how

many bodies and from which law firm, with virtually

all firms compelled to cut, or taking the opportunity

in this environment to be more aggressive with

"culling the herd." Stories of cutbacks on expenditures

for retreats, bottled water and cookies, computers, parking

and perks abound. Almost every memo from firm

leadership to the partners and staff announcing these cutbacks

and layoffs is peppered with phrases like "we are

strong", "we must respond like all business and our law

firm competitors to this economic environment", etc.

The real questions are:

1) whether this cost cutting is doing any good;

2) if it is doing good, is it enough, and most importantly;

3) is it really the answer to what ails the model

of the business?

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Edwin Reeser, Edwin B. Reeser, A Professional Law Corporation | Attorney Advertising

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