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Cooley LLP, a prominent law firm founded in Silicon Valley, has made an unexpected move by requesting certain incoming first-year associates to defer their start dates by one year. In exchange for this deferral, the associates will receive a generous stipend of $100,000. The firm reached out to incoming corporate associates and presented them with three options ahead of their originally scheduled January start dates, according to reliable sources familiar with the matter.
The first option offered to the first-year corporate associates is to postpone their start dates until the following year. By doing so, they will be eligible to receive the stipend as compensation for their deferral. The second option allows them to proceed with their original plan of joining the corporate group in January. Lastly, associates also have the choice to switch to another practice area within the firm that currently has a higher workload while still maintaining the same start date.
Cooley’s decision to delay the start dates and reduce the number of incoming corporate associates is a strategic response to the current slowdown in demand. The firm aims to adjust the size of its incoming corporate class to align with the evolving market conditions. In an official statement provided to Bloomberg Law, Cooley confirmed the changes, stating, “We can confirm that due to current market conditions, we will be reassigning a limited number of incoming corporate associates to alternate practice areas. We are also offering a voluntary full-year deferral to this limited group of incoming associates and a stipend to compensate for their deferral. We continue to be focused on ensuring that all our associates have the opportunity to receive meaningful development opportunities throughout their tenure with us.”
Prior to this recent announcement, Cooley had already postponed the start date for its first-year class from November to January 2024. The firm had faced challenges in the past year, including the need to lay off 150 attorneys and staff across its US offices. These measures were deemed “painful but necessary” in response to the declining workload. Despite these difficulties, Cooley remained a key player in the legal industry, boasting an impressive client roster that includes top technology companies. The firm actively recruited partners and associates from competing firms throughout the pandemic.
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However, the shifting dynamics of the market have resulted in a slowdown in demand for corporate and deals work, prompting some law firms to reevaluate their strategies. As a consequence, several firms have taken measures such as reducing headcounts and postponing start dates. Fenwick & West, another prominent law firm, recently announced that it would defer the start date for its first-year corporate and technology transactions associates to January 16, 2024, in response to the current market conditions.
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Cooley’s decision to offer deferrals and stipends to incoming associates showcases their commitment to supporting their associates during these challenging times. The firm recognizes the importance of providing meaningful development opportunities throughout their associates’ tenure. By adapting to the evolving legal landscape and making strategic adjustments, Cooley aims to navigate the current market conditions while maintaining its reputation as a leading law firm.
