Baker McKenzie lays off lawyers, staffers in North America
9/1/20 REUTERS LEGAL 23:30:42
Copyright (c) 2020 Thomson Reuters
David Thomas
REUTERS LEGAL
September 1, 2020
An empty office room is seen during sunset hour in Taipei, Taiwan, June 5, 2020. Picture taken June 5, 2020. REUTERS/Ann Wang
(Reuters) - Baker McKenzie, the largest law firm in the U.S. by attorney head count and one of the highest-grossing firms in the world, is cutting a swath of its workforce in North America, the firm confirmed Tuesday.
The layoffs, which include lawyers, other timekeepers and staff professionals, come as Baker McKenzie and its clients navigate the economic effects of the ongoing pandemic. The firm has 850 lawyers in the U.S. and Canada and 150 lawyers in Mexico, according to its website. It has more than 13,000 employees on six continents.
"To say this was a hard decision is a massive understatement. We are deeply aware of the human impact of these decisions, and are treating our people fairly and with dignity," the firm said in a statement.
The firm declined to elaborate on the cuts. Bloomberg, which first noted the layoffs, reported that they would affect 6% of Baker McKenzie's North American workforce.
In April, Baker McKenzie slashed salaries for U.S.-based non-partner attorneys, timekeepers and business professionals making more than $100,000 by 15%, and Canadian attorneys saw a 10% reduction. The firm said in its statement those salary cuts will end Dec. 31.
In June, the firm delayed the start date of its nearly 40 first-year associates to January 2021.
Other firms have laid off employees in recent weeks - Davis Wright Tremaine on Tuesday laid off 40 staffers; Reed Smith last week cut 19 people in London including lawyers; and Bryan Cave Leighton Paisner shuttered its Beijing office in July.
The Baker McKenzie layoffs nevertheless stand out due to the size and breadth of the firm. In Chicago, where Baker McKenzie first started, the firm has 580 employees, making the Windy City its second-largest office after London.
Baker McKenzie lost its No. 3 spot on the Am Law 100 list of the highest-grossing U.S. firms in 2019, thanks to its meager 0.7% revenue growth and DLA Piper's surging 9.7% growth. DLA Piper cracked the $3 billion threshold last year, while Baker McKenzie raked in $2.92 billion, according to the rankings.
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