Layoffs continue to be mostly contained to firms with tech-heavy portfolios and a few additional outliers sorting out overleveraging in some practice areas. But if you thought “avoiding layoffs” meant a firm wasn’t feeling the deal slowdown pinch… Well, denial ain’t just a river in Egypt.
Because defer ain’t just a river in Saskatchewan. The deferral taboo has been broken and whether firms are pushing off everyone or just some practice groups, asking the incoming class to cool its heels for an extended period is the trendy way to save on some expenses before deal volume returns.
A tipster informs us that another firm has joined the deferral ranks, deferring all first years across the country until January 15, 2024. As far as we can tell, the firm is offering a $15K stipend (“less applicable taxes” as the tipster notes) and no health coverage. We reached out to the firm for comment but have not heard back at this time.
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The market appears to be coalescing around a $15K stipend for deferral — with the exception of Cooley’s special offer to some associates willing to defer to 2025 for a $100K price. Assuming a September start date that’s the equivalent of a $45K-50K annual salary. Which isn’t bad, assuming the incoming class hasn’t lined up real estate in New York or San Francisco beginning in September.
If they have, then it’s probably time to start making choices between food and shelter. Just what people need to heap on top of studying for the bar!
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). Thanks!
Earlier: Perkins Coie Is The Next Firm To Defer Incoming Associates
Cooley To Defer Incoming Associates Again, But This Time The Firm Is Offering A Six-Figure Paycheck
After Layoffs Last Year, Cooley Delays Start Date For First-Year Associates
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Joe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.