If present trends continue in the big firm market, we are heading toward – you pick the cliche – a paradigm-shifting, blood-in-the-suites, terror-on-the-campus hiring and retention crisis. The “economic reset” that General Electric CEO Jeffrey Immelt referred to seems likely to force changes in the way firms recruit, pay, and/or retain their lawyers. The market for labour has changed and, for now at least, there is no normal to which it can return.
Law firms are actively considering the prospect of pay cuts, delayed starting dates, sharply reduced offers, and more layoffs. The carnage of Black Thursday is likely to continue. This is an ugly situation made worse by the peculiar hiring schemes that were tolerable during good times but now are under serious stress. Not every firm has swung the scythe, and some never will. It is notable though, that with so many firms pushing out so many people, there is little of the usual talk about how firms are endangering their cultures. For the moment they are more concerned about managing their businesses.
