The economic uncertainty caused by COVID-19 continues to leave its mark on Biglaw. Earlier today we reported on a Biglaw firm, Womble Bond Dickinson, laying off associates and cutting salaries, and more firms holding back on lateral hiring as the economy goes into free fall. And it seems partners will also be feeling the pinch.
Reed Smith has announced that they’ll be slowing partner cash distributions in response to the financial downturn. The firm emphasized business is good right now, but they are making the move as a “precaution” and “bracing for the short-term and potential long-term economic impacts of COVID-19.”
From a firm spokesperson:
Reed Smith is performing on plan through the first three months of 2020. Many of our practices are exceptionally busy right now. At the same time, we know businesses around the world are bracing for the short-term and potential long-term economic impacts of COVID-19, and we are taking a fiscally conservative yet responsible approach. Our leadership is taking a cautious approach and has made the decision to slow partner cash distributions in the near term as a precaution. We think this is a prudent choice as we look ahead to uncertainty in global events.
Let’s hope that this proactive approach saves jobs, and the firm won’t be forced to join the layoffs 2020 club.
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).