Am Law 100 Firm Announces Layoffs, Will Defer Some Incoming Associates
Layoffs continue apace at Biglaw firms across the country, and show no sign of stopping.
The leaders of Katten Muchin — a firm that brought in $742,885,000 gross revenue in 2022, putting it at No. 67 in the most recent Am Law 100 — just announced a series of layoffs among attorneys and staff. Less than 5% of attorneys were affected by these cuts.
Although the firm’s gross revenue and profits per equity partner went up last year, its revenue per lawyer went down by 2%, perhaps due to the firm’s 6.2% increase in head count. And now, unfortunately, layoffs have arrived to account for the firm’s oversized hiring practices amid poor economic conditions for their clients.
When reached for comment, a spokesperson from Katten offered this statement on the firm’s behalf:
Like all businesses, we must adapt to the needs of our clients. The rapidly shifting economic conditions of the last couple years have been challenging for many of our clients, recently decreasing their demand for some of our legal services. After working through these conditions for some time and a careful review of our business, we made the difficult decision to address this overcapacity by parting ways with a small number of our attorneys and business support professionals. Where possible, we reassigned team members to practice groups where demand exceeds capacity, and our reductions were limited to groups where existing and expected demand is diminished. Consistent with these circumstances, we will be deferring a portion of our incoming class to a February 1 start. The rest of our incoming associates will begin with the firm as usual, in October. Parting with talented colleagues and good friends is not easy. Our actions are not a negative reflection on our colleagues or their contributions to our firm. Rather, the decision reflects the reality of the business environment in which we find ourselves and our commitment to continually provide development opportunities that allow our people to grow. While difficult, we believe our decision will keep the firm strong and well prepared to serve our clients and our people.
Best of luck to those who are being let go from Katten.
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.
Source: Above the Law
