Fewer Jobs for Life - Partners Nudged/Forced Out

 In the top-tiers it used to be: Whew, you made it. No need to worry. Even maybe now you could let yourself coast a bit.

Recently the rug has been pulled from under some partners at KPMG and EV. Often with no warning. They might have even received a positive performance review. Financial Times reports:

"KPMG and EY have removed members of their equity partnership – the senior practitioners who own the firm and share its profits – and instead offered them 'salaried partner' roles, several people with knowledge of the matter told the FT."

The dynamic is: Those assessed as "underperformers" aren't building revenue in the partner pool of compensation. Therefore, they have become a liability. This can no longer be tolerated because:

To recruit, retain and motivate top talent the money has to be better than what competitors are offering.

With some branches of professional services such as consulting/auditing slowing down in demand, less overall revenue could be coming in.

There is growing fear about how AI is determining the future of the firm, so cutting highly paid manpower reduces risk. Funds are freed up to invest in AI. 

None of this is new. For years, law firms and Goldman Sachs have been nudging or actually pushing out partners who no longer can cut the mustard. It's that brutal. In the legal sector either the underperforming partner is shamed enough to depart or is demoted from equity partner to counsel. 

What is new is that this human-resources management tool is becoming common in professional services. No high-flyer should assume that they will always be able to hold on to the august title. When their earning power lessens, they will be marked as expensive baggage weighing down Profits Per Equity Partner. The expose on Big Law "Servants of the Damned" by David Enrich documents the transition in large law firms from a noble profession with old-line values to how an ATM operates. According to Enrich, the current function of a large law firm is to spit out funds for equity partners. If that develops a glitch, a fix must be done. Rapidly. And that it is. 

Here's what all this has come to. 

It will take lots of money by Paul, Weiss to attract extraordinary litigation talent. See, this week it announced that Supreme Court heavyweight partner Kannon Shanmugam left for David Polk. Given that the firm is moving more toward corporate and away from being a litigation powerhouse, there were plenty of issues. However, no one should rule out money as a factor in Shanmugam's decision. 

To fill that void created by this exit, partners are probably already out there recruiting big-name litigators. It's about compensation. And that compensation results from only operating with partners who continue increasing the revenues they are bringing in.

In my intuitive coaching/tarot readings what clients are resisting is just this: That, with a few exceptions like being a justice on the US Supreme Court, no employment is guaranteed. Continually figure out how you are creating the kind of value that enhances the bottom line. 

Earning a Good Living in 2026 Involves Mental Combat. The enemy is usually your own thinking.

Complimentary consultation. No Pressure. Solid Guidance. Contact Jane Genova janegenova374@gmail.com.