Shearman & Sterling, a New York-based law firm, has announced that it has laid off 38 employees due to the changing market conditions. The firm confirmed that the limited workforce reduction included 26 members from its business services and 12 associates from its transactional practice. This comes amid rumors that the law firm is in merger talks with Hogan Lovells.
The announcement by Shearman & Sterling follows a similar announcement by Davis Wright Tremaine, which laid off 21 employees in areas where it had “excess capacity or redundancy and misalignment.” This trend of headcount reduction is not limited to these two firms alone, as other prominent law firms have also trimmed their headcounts in recent months. For instance, Cooley laid off 150 lawyers and staff last year to adjust for slowing demand. At the same time, Goodwin Procter announced earlier this year that it was laying off associates, paralegals, and other professional staff across its offices. Stroock & Stroock & Lavan also cut nine lawyers and 18 staff positions.
As the firm stated in its statement, the move by Shearman & Sterling to lay off its employees was a critical step to align its capacity levels with existing client demands. The firm acknowledged that while it was painful to part ways with its colleagues, adjusting to the changing market conditions was necessary. This decision was taken after careful consideration, and the firm believes it was the best course of action to ensure its long-term success.
Despite the headcount reductions, firms are optimistic about their future and are confident that they will be able to overcome the current challenges. The legal industry is known for its resilience, and it is expected to recover from the current market conditions soon.
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Shearman & Sterling Lays Off 38 Attorneys, Staff in US Offices