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We hate to say it, but even though demand is slightly up, Biglaw’s layoffs show no sign of stopping.
The leaders of Choate Hall & Stewart — a firm that brought in $$311,956,000 gross revenue in 2022, putting it at No. 119 in the most recent Am Law 200 — recently announced a reduction in force. The firm is cutting about 5% of its employees, including attorneys and business professionals. A source tells us that 17 associates are affected.
Although Choate was one of the Am Law 200 firms that made it into the top 20 for RPL in the American Lawyer’s latest rankings (No. 17, $1.61 million), it was also the only Am Law 200 firm to see a decline in RPL from the prior year (down 5.8%).
Here’s an excerpt from the firm’s memo (available on the next page), citing “economic conditions” that have thwarted demand in certain practice areas as the reason behind these layoffs:
Despite our success, like our clients and major law firms generally, we live in a world which is impacted by general economic and market conditions. Reductions announced at many of our competitors during the last 6-12 months illustrate the challenges of the current economic environment. We have not been immune to them, and economic conditions have impacted work levels in certain parts of the Firm. After monitoring these developments carefully for a period of time, we have come to the difficult decision that we currently have too many lawyers and business professionals in certain practice areas and departments based on the current demands of our clients.
Bill Gelnaw and Charles Cheever, the firm’s co-managing partners, noted in the memo that the reduction in force “is a difficult step for Choate and one we deeply regret is necessary.”
Choate’s firmwide memo announcing the reduction in force is a kinder, gentler version of the layoff memos we’ve seen in the past. “The reduction is not a reflection on any of these individuals,” Gelnaw and Cheever wrote. “It is the result of work levels, not performance.” The memo continues, explaining that all those affected will receive severance packages and outplacement services from the firm.
Best of luck to those who are being let go from Choate.
(Flip to the next page to read the full memo from Choate Hall & Stewart.)
If your firm or organization is reducing the ranks of its lawyers or staff, whether through deferrals, open layoffs, stealth layoffs, or voluntary buyouts, please don’t hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive. You can email us or text us (646-820-8477). Thank you for your assistance.
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Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter and Threads or connect with her on LinkedIn.
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