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Perkins Coie, a prominent law firm with its roots in Seattle, has recently announced that it will be pushing back the start dates for some of its first-year associates. The decision comes as part of a trend among law firms to delay new hires in response to a continued slowdown in the industry.
In a memo from managing partner Bill Malley, viewed by Bloomberg Law, Perkins Coie informed its first-year associates that their start dates, with the exception of those in the intellectual property practice, would be postponed until January 16, 2024. However, the memo states that associates joining the firm’s intellectual property group will still begin their positions on September 18, 2023.
The rationale behind this delay, as explained by Malley in the memo, is the challenging market conditions that have decreased demand for legal work across several practice areas. In order to support the deferred associates during this extended period, the firm has decided to provide a $15,000 stipend to cover their living expenses.
Perkins Coie’s decision is part of a larger pattern observed in the legal industry, where numerous firms have been forced to postpone the start dates for lawyers in the Class of 2023 due to the lagging demand for legal services and a slowdown in dealmaking. Some firms have even resorted to staff and lawyer layoffs as a means to reduce costs in response to these challenges.
See also: Top BigLaw Firm Announces Layoffs and Postponed Start Dates for New Associates
One such example is Orrick, Herrington & Sutcliffe, which recently announced the layoff of approximately 90 attorneys and staff members. In addition to the layoffs, the firm also revealed that it would be delaying the start date for incoming associates until January 16, 2024.
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Cooley LLP, which underwent its own round of layoffs last year, has also decided to postpone the start dates for its first-year associates until January 2024. Moreover, the firm made headlines earlier this month by offering a select number of incoming corporate associates the option to defer their start dates for a full year, accompanied by a generous $100,000 stipend.
Another firm, Fenwick & West, has announced that it too will be delaying the start date for its incoming corporate class until January 2024.
The trend of delaying start dates for first-year associates reflects the challenging environment faced by law firms, as they grapple with reduced demand and a slower pace of dealmaking. These circumstances have necessitated cost-cutting measures and strategic adjustments to align with the current market conditions.
For aspiring legal professionals entering the workforce, these delays may present both challenges and opportunities. On the one hand, the delayed start dates may require careful financial planning and adjustments to their career plans. On the other hand, the stipends provided by some firms offer a financial cushion during this extended waiting period.
As the legal industry adapts to evolving market dynamics, law firms employ various strategies to navigate the current landscape. These measures include deferring start dates, offering financial assistance, and making necessary layoffs to ensure their long-term viability.
For Perkins Coie and other firms, the decision to delay start dates for first-year associates reflects a pragmatic approach to managing resources amidst challenging market conditions. As the industry gradually rebounds and demand for legal services stabilizes, these delayed hires will eventually join their respective firms, bringing fresh perspectives and contributing to their continued success.
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