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ARTICLE · 24 NOVEMBER 2020

Big Law And Associate Layoffs: Sensible Cost Control Or A Misstep?

CITO Energy Law
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Just over one month into the twin crises of Covid-19 and Low Oil Prices, Alberta companies are scrambling to control costs.

CanadaEmployment and HR
Nick Bryanskiy
Nick Bryanskiy
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Just over one month into the twin crises of Covid-19 and Low Oil Prices, Alberta companies are scrambling to control costs. Most are doing so to buy enough time and space to identify new, adaptive business mod­els to emerge from the wreckage sustainably stronger. So, what are law firms doing in this downturn to cut their costs and adapt to what could be a 'new normal'?

I do not know what all of them are doing, but I do know how many Big Law firms have responded. They have fired a large number of talented young associates. At first glance, this might appear to be sensible – lowest on the totem pole, less experience, higher overhead, lower billable rate, etc. On a closer examina­tion though, mass associate layoffs are bad idea for five reasons:

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