The legal industry has seen a slowdown in job losses, leading some to believe that the predictions of an industry-wide layoff were exaggerated. However, it has been revealed that law firm leaders are still quite apprehensive about the economy and that layoffs are still looming. This week, an Am Law 100 firm, Davis Wright Tremaine, conducted a round of layoffs, affecting 21 professional staff members. The firm, which generated gross revenue of $482,140,000 in 2021, is ranked 89th on the Am Law 100 list.
The reason cited by the firm for the layoffs was the need to “better align its capabilities and capacity with current and anticipated workflows.” The firmwide managing partner, Scott MacCormack, communicated the layoffs in a memo to all employees, emphasizing the importance of transparency in the firm’s culture. MacCormack explained that the firm had excess capacity in certain areas and that, with the changing work environment, there was redundancy and misalignment around the skills and capabilities required to serve clients.
Given the current economic climate, the firm chose to make these changes to enable it to invest in areas of strategic importance or high demand. The staff members impacted by the layoffs will receive severance packages and support from outplacement services.
It is unfortunate that layoffs have affected the legal industry. Still, it is essential for law firms to continually assess their operations and make necessary changes for their success. The layoffs at Davis Wright Tremaine serve as a reminder of the current economic climate and the legal industry’s challenges. Our thoughts are with those affected by the layoffs, and we wish them all the best in their future endeavors.