The Biglaw Firms With The Biggest Drops In Attorney Headcount (2015)
Some of these drops in headcount are stunning -- we're talking more than 20 percent.
Now that we’ve entered the fourth quarter of 2015, it’s time to take a look back at some of the nation’s largest law firms and examine which ones suffered the most when it came to attorney headcount. Lateral moves produce a near constant churn of lawyers at these firms; some leave for better opportunities, while others sense trouble and choose to leave before it’s too late. Others still fall into a different category all together: they’ve been laid off.
Using ALM’s RivalEdge database, the Am Law Daily came up with a list of the firms that grew the most in 2015, as well as a list of the firms that shrank the most. As we’ve discussed previously, 2015 has been a record year for mergers thus far, inflating some firms’ headcounts exponentially, so we were much more interested in the firms that managed to lose attorneys during a time of historic growth.
These are the four firms that saw the largest negative percent change in lawyers in 2015:
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- Irell & Manella: Right now, the firm’s headcount is down by a whopping 27 percent. This firm has leaked lawyers like a sieve throughout the year, but the biggest hit came this past winter, when a group of more than 30 attorneys left the firm to join Hueston Hennigan, a boutique formed by John Hueston, who once served as chair of Irell & Manella’s Trial and Crisis Management practice, and Brian Hennigan, who once served as co-chair of the Corporate Crisis and White-Collar Defense Practice. These departures slashed about a quarter of the firm’s total headcount. Ouch.
- Dickstein Shapiro: As it stands, the firm’s headcount is down significantly, by 23.2 percent. This firm has had a rough go of things since 2013 when it lost 17 percent of its partners, and has been losing lawyers left and right ever since. Partner attrition has been through the roof as they flee to other firms (Dickstein’s entire insurance coverage practice group left in July) and even start their own (two of the firm’s bankruptcy partners formed a boutique in June). It certainly doesn’t help that Dickstein’s biggest alleged dick, Dennis Hastert, the former co-chair of the firm’s public policy practice group, may soon be heading to federal prison.
- Kasowitz Benson: As of today’s date, the firm’s headcount is down by 18.6 percent, and what’s truly stunning is that it seems to be through its own doing. Following the firm’s issuance of “insulting,” below-market bonuses in January, it doubled down on its doom and gloom in March by laying off up to 40 attorneys due to a slump in litigation cases. As a word of warning, March layoffs have been a common occurrence at this firm for at least the past two years. If you’re thinking about leaving, do it sooner rather than later, before the firm makes the decision for you.
- Kenyon & Kenyon: At present, the firm’s headcount is down by 16.4 percent, but we don’t expect it to stay like that for long — it may get much worse. Partners have been exiting at a steady pace, and appointing Stephen Colbert’s big brother as managing partner isn’t likely to make things better. Thus summer, partners were asked to “voluntarily” forgo taking their draws so the firm would be able to make payroll. We continue to receive tips on troubles at this struggling firm. Email us with more.
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Click here to see the full list of the top 8 firms whose headcounts were slashed in 2015.
As we noted the last time we discussed declines in lawyer headcount, “if you’re planning to lateral this year, now you know which firms could be hurting for new [attorneys]. But there’s got to be a reason why everyone’s flying the coop at these firms, so don’t say we didn’t warn you.” For the time being, perhaps it would be wiser to stay put.
If you’ve noticed unusual attorney attrition at your firm or organization, or if your firm or organization is reducing the ranks of its lawyers or staff, whether through 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 — we’ll never ignore you. You can email us or text us (646-820-8477). Thank you very much for your assistance!
Greenspoon, Dickstein See Head Counts Rise and Slide [Am Law Daily]
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