Law Firms - Return of The Formal Layoff, This Time at Armstrong Teasdale

Of course there has been the noise speculating, especially on professional anonymous networks, if the layoffs in law firms were over. That is, the formal kind. Not those terminations supposedly based on performance. Those are called "being stealthed." However, there had been a hiatus on RIFs (reductions in force). Until now.

Am Law 200 law firm Armstrong Teasdale announced it was laying off 11 laywers and 24 staff members. Here are more details from Law.com. 

In itself that was not a surprise. During May 2023, that firm announced a 14% decline in Profits Per Equity Partner. That is a key metric in law firms for everything from branding to recruiting/retaining stars. And the unique business the law firm is operates on the wattage of star power. In a Bloomberg Law News interview Paul Weiss chair Brad Karp explained those specific dynamics. 

Now, with the Armstrong Teasdale RIF what's kicked off is intensified guessing by associates throughout law firms about how secure their position is. The new crop - Class of 2023 - will be arriving in September, until the start date had been deferred. 

Will associates already in-place be made to feel more pressure to produce as there are additional mouths to feed? That's been a major source of angst. There's a rumor that the criteria for a good performance review had been raised. A bad or mediocre review opens the door to the PIP (Proposal to Improve Performance) which many interpret as a legal way to cut loose associates for cause.

Data or the gut for your careers and communications? Both of course. Complimentary consultation with intuitive coach, content-creator, and Tarot reader Jane Genova (text 202-468-8579, janegenova374@gmail.com).