(Image via Getty)
The Biglaw austerity measures are slowly making the way up the chain to the top of the Biglaw landscape. We’ve now seen multiple firms that make a billion dollars+ in gross revenue implement cost-cutting moves. The latest Biglaw firm in the billion-dollar club to announce salary cuts in K&L Gates, the firm that is 37 on the Am Law 200 ranking with $1,007,615,000 in 2018 gross revenue.
So what is happening at K&L Gates? Equity partners are taking a 20 percent reduction in scheduled advances and firm leaders are taking even larger reductions. Income partners, associates, and allied professionals/staff are taking a 15 percent reduction in their salary provided they don’t go below a $75,000 floor (with some regional variations). As the firmwide email notes (available on the next page), “All personnel will be considered for discretionary bonuses for extraordinary performances or contributions, as many are working very hard through this period.”
Hopefully, these cost-cutting measures mean the firm can avoid layoffs and more severe moves.
If your firm or organization is slashing salaries, closing its doors, or reducing the ranks of its lawyers or staff, whether through 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).
If you’d like to sign up for ATL’s Layoff Alerts, please scroll down and enter your email address in the box below this post. If you previously signed up for the layoff alerts, you don’t need to do anything. You’ll receive an email notification within minutes of each layoff, salary cut, or furlough announcement that we publish.
Kathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).