Reports of Stealth Layoffs at Snell & Wilmer: Are Biglaw Firms Cutting Headcount Under the Radar?

What Are Stealth Layoffs in Biglaw and How Do They Affect Associates?

 
As the economic downturn continues to impact industries across the board, reports have surfaced of another biglaw firm engaging in stealth layoffs. Snell & Wilmer, an Am Law 200 firm, is said to have let go of some associates in recent months, with insiders reporting that the firm characterized these terminations as performance-based. However, many within the firm are skeptical of this explanation and believe that the terminations may be part of a larger trend of stealth layoffs in biglaw.

 
For those who may not be familiar, stealth layoffs are a particularly pernicious form of headcount management that biglaw firms may engage in during economic downturns. Essentially, firms will cut associates (who often had good performance reviews until the economy took a hit) while calling the cuts "performance-based." This allows firms to cut
headcount without confirming that there were economic-based layoffs, and instead signal that the cuts were made for other reasons.
 
Snell & Wilmer, like many other firms, has been impacted by the economic downturn, previously cutting associate salaries by 10 percent and furloughing staff who can't work remotely. Now multiple tipsters from the firm are reporting that there has been some headcount management at the firm. Though they're being told the terminations are performance-based, many are skeptical of this explanation.
 
One tipster reported, "Snell Wilmer has laid off associates in LA and OC, for, supposedly, underperformance. Definitely BS… we all know they were stealth layoffs." Another said, "The firm is publicly stating that they are not doing layoffs, and has reduced all employees salaries as a way to 'avoid layoffs' but had secretly been conducting layoffs anyways."
In response to these reports, Matt Feeney, Chair of Snell & Wilmer, provided the following statement denying any associate departures resulted from layoffs: "Snell & Wilmer is not conducting layoffs, 'stealth' or otherwise. Out of respect for the privacy of our former employees, we do not provide details on departures."
 
While Snell & Wilmer denies that it is engaging in stealth layoffs, the reports from insiders and associates paint a different picture. The use of stealth layoffs in biglaw raises critical ethical questions about how firms manage their headcount during difficult economic times and how it impacts associates' livelihoods. It is important that firms are transparent about the reasons for terminations and that associates are treated fairly and respectfully during this difficult time.
 
It is a tough time for anyone who suddenly finds themselves out of work, especially during a pandemic. It is important to remember that it is not the fault of the individual but rather the result of larger economic forces at play. We wish the best for all those affected by these reports of stealth layoffs at Snell & Wilmer and hope that they are able to find new opportunities soon.
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.

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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.