Silicon Valley-Founded Law Firm Cooley Cuts Staff Amid Drop in Client Demand
Silicon Valley-founded law firm Cooley has announced that it has laid off 150 U.S. employees, including 78 lawyers, due to a drop in client demand for the firm and the broader U.S. legal industry. The layoffs come as many large tech companies, a core Cooley clientele, have also been trimming their workforces.
According to Joe Conroy, Cooley's chairman and CEO, certain practice groups at the firm were "substantially overbuilt" after aggressive hiring to meet soaring demand in 2020 and 2021. "Simply put, we hired more talent than we can reasonably develop, train and deploy against current and anticipated client demand," Conroy said in a firmwide email reviewed by Reuters.
None of the attorneys who were laid off were partners, and a majority of the reductions came from the firm's business department, which handles M&A work, according to a person familiar with the layoffs. It is worth noting that Cooley had revenue of $1.98 billion last year and had more than 1,200 attorneys, according to trade publication American Lawyer.
The layoffs at Cooley come as many large tech companies, a core Cooley clientele, have also been trimming their workforces. Facebook parent Meta Platforms Inc said earlier this month it would slash 11,000 jobs, and Amazon.com Inc said it had laid off some employees in what could preview much larger cuts.
The demand for legal services has dropped overall, as many U.S. law firms went on a hiring spree last year to keep up with record-breaking global M&A activity that topped $5.9 trillion in deals. However, that transactional work slowed in 2022 and the demand for legal services has dropped overall, as Wells Fargo's Legal Specialty Group found earlier this month.
Conroy said the firm's recruiting success "proved to be misaligned with the unexpected economic downturn that has occurred and will likely persist well into the year ahead." The employees who have been laid off will receive severance benefits and other services, according to the CEO.
Clearly, the legal industry is facing a demand dip, and this is evident not only in the layoffs at Cooley, but also in the cuts made by large tech companies and the overall drop in demand for legal services. As the economic downturn persists well into the year ahead, it will be interesting to see how the legal industry adapts and responds to these challenges.
However, it is also important to note that this is not the first time the legal industry has faced a downturn, and it will likely not be the last. The industry has always been able to adapt and find new ways to serve its clients and meet their changing needs. Law firms that can anticipate and respond to these changes will be the ones that thrive in the future.
In conclusion, while the layoff at Cooley is unfortunate, it reflects the current economic downturn and the drop in demand for legal services. The legal industry will have to adapt and respond to these challenges to thrive in the future. The employees who have been laid off will receive severance benefits and other services, and the firm will continue to focus on developing and deploying the talent it has to meet the changing needs of its clients.
About Harrison Barnes
Harrison Barnes is a prominent figure in the legal placement industry, known for his expertise in attorney placements and his extensive knowledge of the legal profession.
With over 25 years of experience, he has established himself as a leading voice in the field and has helped thousands of lawyers and law students find their ideal career paths.
Barnes is a former federal law clerk and associate at Quinn Emanuel and a graduate of the University of Chicago College and the University of Virginia Law School. He was a Rhodes Scholar Finalist at the University of Chicago and a member of the University of Virginia Law Review. Early in his legal career, he enrolled in Stanford Business School but dropped out because he missed legal recruiting too much.
Barnes' approach to the legal industry is rooted in his commitment to helping lawyers achieve their full potential. He believes that the key to success in the legal profession is to be proactive, persistent, and disciplined in one's approach to work and life. He encourages lawyers to take ownership of their careers and to focus on developing their skills and expertise in a way that aligns with their passions and interests.
One of how Barnes provides support to lawyers is through his writing. On his blog, HarrisonBarnes.com, and BCGSearch.com, he regularly shares his insights and advice on a range of topics related to the legal profession. Through his writing, he aims to empower lawyers to control their careers and make informed decisions about their professional development.
One of Barnes's fundamental philosophies in his writing is the importance of networking. He believes that networking is a critical component of career success and that it is essential for lawyers to establish relationships with others in their field. He encourages lawyers to attend events, join organizations, and connect with others in the legal community to build their professional networks.
Another central theme in Barnes' writing is the importance of personal and professional development. He believes that lawyers should continuously strive to improve themselves and develop their skills to succeed in their careers. He encourages lawyers to pursue ongoing education and training actively, read widely, and seek new opportunities for growth and development.
In addition to his work in the legal industry, Barnes is also a fitness and lifestyle enthusiast. He sees fitness and wellness as integral to his personal and professional development and encourages others to adopt a similar mindset. He starts his day at 4:00 am and dedicates several daily hours to running, weightlifting, and pursuing spiritual disciplines.
Finally, Barnes is a strong advocate for community service and giving back. He volunteers for the University of Chicago, where he is the former area chair of Los Angeles for the University of Chicago Admissions Office. He also serves as the President of the Young Presidents Organization's Century City Los Angeles Chapter, where he works to support and connect young business leaders.
In conclusion, Harrison Barnes is a visionary legal industry leader committed to helping lawyers achieve their full potential. Through his work at BCG Attorney Search, writing, and community involvement, he empowers lawyers to take control of their careers, develop their skills continuously, and lead fulfilling and successful lives. His philosophy of being proactive, persistent, and disciplined, combined with his focus on personal and professional development, makes him a valuable resource for anyone looking to succeed in the legal profession.
About BCG Attorney Search
BCG Attorney Search matches attorneys and law firms with unparalleled expertise and drive, while achieving results. Known globally for its success in locating and placing attorneys in law firms of all sizes, BCG Attorney Search has placed thousands of attorneys in law firms in thousands of different law firms around the country. Unlike other legal placement firms, BCG Attorney Search brings massive resources of over 150 employees to its placement efforts locating positions and opportunities its competitors simply cannot. Every legal recruiter at BCG Attorney Search is a former successful attorney who attended a top law school, worked in top law firms and brought massive drive and commitment to their work. BCG Attorney Search legal recruiters take your legal career seriously and understand attorneys. For more information, please visit www.BCGSearch.com.
Harrison Barnes does a weekly free webinar with live Q&A for attorneys and law students each Wednesday at 10:00 am PST. You can attend anonymously and ask questions about your career, this article, or any other legal career-related topics. You can sign up for the weekly webinar here: Register on Zoom
Harrison also does a weekly free webinar with live Q&A for law firms, companies, and others who hire attorneys each Wednesday at 10:00 am PST. You can sign up for the weekly webinar here: Register on Zoom
You can browse a list of past webinars here: Webinar Replays
You can also listen to Harrison Barnes Podcasts here: Attorney Career Advice Podcasts
You can also read Harrison Barnes' articles and books here: Harrison's Perspectives
Harrison Barnes is the legal profession's mentor and may be the only person in your legal career who will tell you why you are not reaching your full potential and what you really need to do to grow as an attorney--regardless of how much it hurts. If you prefer truth to stagnation, growth to comfort, and actionable ideas instead of fluffy concepts, you and Harrison will get along just fine. If, however, you want to stay where you are, talk about your past successes, and feel comfortable, Harrison is not for you.
Truly great mentors are like parents, doctors, therapists, spiritual figures, and others because in order to help you they need to expose you to pain and expose your weaknesses. But suppose you act on the advice and pain created by a mentor. In that case, you will become better: a better attorney, better employees, a better boss, know where you are going, and appreciate where you have been--you will hopefully also become a happier and better person. As you learn from Harrison, he hopes he will become your mentor.
To read more career and life advice articles visit Harrison's personal blog.
