DLA Piper Law Firm Announces Second Layoffs This Year

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DLA Piper announced this week that they were going for their second round of layoffs this year, cutting 21 associates and 100 staff. Earlier this year they let 80 associates and 110 staff members out the door. Additionally, they lowered first year associate salaries from $160,000 to $145,ooo per year. They also announced that they would be changing to a merit-based pay system for associates, instead of compensation based on years in practice.

The move away from merit-based compensation began in the mid 1990's when the demand for attorney's rose sharply, but the number of graduating attoneys dropped. Most of the major law firms were just competing for "warm bodies" out of law school, which caused salaries to sky-rocket, billing requirements to drop and amenities to increase. The big firms created the environment and the big firms are, now, the most vulnerable to the recession. Smaller firms that never competed for attorney hires in this manner are vitually insulated from this condition. However, we are all getting hit with the trauma of clients that can't pay, while legal work loads have not decreased.

Other large law firms, such as Greenberg Traurig and Baker & McKenzie, have cut their attorney salaries this year, as well.

Is there any question that the recession has finally hit the law firms and that associates are the most vulnerable?

The quickest way to save money is to get rid of the least experienced attorneys that demand high salaries, but don't generate solid profits. This is a business, too, ya know.

Here is a list of the larger firms, that have Nevada offices or ties, with recent cuts** (I'll add to the list if you let me know):

· Confirmed (Media):
· Ballard Spahr Andrews & Ingersoll
· DLA Piper
· Duane Morris**
· Greenberg Traurig

· Suspected:
· Alverson, Taylor, Mortensen & Sanders
· Brownstein, Hyatt, Farber, Schreck, LLP
· Bullivant Houser Bailey PC
· Gordon & Silver, Ltd.
· Holland & Hart LLP
· Jones Vargas
· Lewis, Brisbois, Bisgaard & Smith LLP
· Lionel, Sawyer & Collins
· McCormick, Barstow, Sheppard, Wayte & Carruth LLP
· McDonald Carano Wilson, LLP
· Santoro, Driggs, Walch, Kearney, Holley & Thompson
· Snell & Wilmer, L.L.P.

**UPDATE (Correction) 7-9-09: Click HERE
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