Biglaw

Top Am Law Firm's Massive Restructuring Leaves 4 Percent Of U.S. & U.K. Staff Out Of Work

The firm says the pandemic has affected the way they work, and that's why these cuts are being made.

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It’s long been a trend for Biglaw firms to reduce the amount of staff that is needed to support attorneys, but the economic upheaval of the coronavirus crisis seems to have supercharged the issue. This past fall, many firms restructured and rightsized their ranks, but as COVID continues to run rampant across the globe, with new variants and shutdowns in place, it looks like the cuts may climb in 2021. The latest firm to slash its staff headcount is Morrison & Foerster.

With $1,147,200,000 gross revenue in 2019, the firm came in 32nd place on the most recent Am Law 100 ranking. But despite this huge sum, the firm is moving ahead with layoffs among its staff members. “Staff and attorney morale is in the crapper,” said one of our sources.

According to a spokesperson, 38 employees will be impacted by the layoffs, representing “approximately 4% of staff positions in the U.S.” and a “handful of staff roles in the UK.” Here is a statement we received from MoFo:

The pandemic has affected the way we work as a Firm, and how we deliver for our clients and attorneys. This has accelerated trends, particularly in how we support our practices and staff our physical offices.

To position the Firm for continued success, we regularly evaluate our staffing model in light of technology advances, demand for services, and the needs of the business, and make adjustments accordingly. As part of this process, it became obvious that the fundamental changes we have experienced over the past year will outlast the pandemic, and that we needed to adapt, investing in those roles that best serve our clients’ emerging needs.

As a result of this review, we have taken the immensely difficult decision to eliminate approximately 4% of staff positions in the U.S., and follow a redundancy consultation process for a handful of staff roles in the UK. We have not taken this painful decision lightly, but felt it was necessary to address the evolving nature of our work, and to position the Firm for continued strength and success. We deeply appreciate the dedicated and valuable contributions these individuals have made to the Firm. We are focused on supporting all affected colleagues, each of whom were informed on Friday. Those affected will be eligible for severance pay and outplacement services, as well as healthcare benefits for those based in the U.S.

Best of luck to all those who are affected by the layoffs at Morrison & Foerster.

If your firm or organization is slashing salaries, closing its doors, or 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. You can email us or text us (646-820-8477).

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Staci ZaretskyStaci 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 or connect with her on LinkedIn.

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