Cadwalader, Wickersham & Taft, a prominent Biglaw firm, has recently announced layoffs that seem to be a mixture of both stealth and outright layoffs. This news has shocked the legal community, especially given that many had hoped Biglaw firms were done playing “follow the leader” when it comes to job cuts.
According to a recent report from the American Lawyer, Cadwalader brought in $544,832,000 gross revenue in 2022, putting it in 84th place in the most recent Am Law 100. This represents an 11-spot drop thanks to a more than 10 percentage point decline in revenue.
The firm has cut ties with approximately 30 business professionals and 15 associates across its offices. Sources say that the business professional ranks were slashed as the firm right-sized various roles, including legal assistants. Cadwalader saw redundancies and inefficiencies with its existing staff headcount as technology and more attorney self-help have created a lower need for those services, similar to staffing cuts at other firms.
Regarding the attorneys, sources have said that their cuts were part of “annual performance reviews,” which is the corporate phrasing du jour for stealth layoffs. These “performance-based” decisions have resulted in job losses at several top-tier Biglaw firms in recent weeks, with one firm even claiming that these were “not layoffs.” However, many in the legal community view this as a disingenuous attempt to avoid the negative connotations associated with layoffs.
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The news of these layoffs is yet another indication of the challenges faced by the legal industry in the current economic climate. Many law firms have been forced to reduce their headcounts in response to declining revenue and increased competition. However, the timing and circumstances of these layoffs at Cadwalader have raised eyebrows and sparked concern among legal professionals.