Associate layoffs a possibility

Law firms are busy now, but it may not be long before they start feeling the pains of the credit crunch, according to the article "With Dip in Economy, Are Associate Layoffs on the Horizon?" by Gina Passarella at Law.com:

"Future layoffs are a realistic possibility, and they would come in the areas of corporate finance and real estate," Duane Morris Chairman Sheldon Bonovitz said. "This is by reason of the turmoil in the debt markets which has made finance of many transactions in the pipeline problematic or not feasible."

The firms that will be hit the hardest, he said, are ones focusing on financings and securitizations as well as leveraged buyouts. Litigation, bankruptcy and employment law would then pick up, Bonovitz said. Practices like health care, intellectual property and energy would probably be immune from any hits, he said.

Comments

[Susan Cartier Liebel]

Anastasia,

In the Demographic and Economic Trends category Build A Solo Practice has been discussing this for some time while encouraging those who don't know what practice areas to get into to consider bankrutpcy, foreclosures and creditor's rights. It is important to always consider the economy when determining practice areas.

[Anastasia]

Thanks, Susan! I agree that it is always a good idea to do your research and understand the economic realities of a particular practice area and I would add, the lifestyle consequences as well.