Hogan Lovells to lay off 4% of Americas business services staff
10/23/20 REUTERS LEGAL 21:59:38
Copyright (c) 2020 Thomson Reuters
Caroline Spiezio
REUTERS LEGAL
October 23, 2020
Signage is seen outside of the Hogan Lovells law company in Washington, D.C., U.S., August 30, 2020. REUTERS/Andrew Kelly
(Reuters) - Hogan Lovells is laying off about 4% of its business services staff in the Americas, impacting 43 jobs in the United States and Mexico, the law firm said Friday, citing the coronavirus pandemic and changing needs.
It's the latest of several large law firms to cut staff since summer as the pandemic forces attorneys to get comfortable using technology and working without in-person help, and as firms have looked for ways to conserve cash.
Hogan Lovells is also starting a voluntary redundancy program for U.K. business services and secretarial staff, it said.
Chief executive officer Miguel Zaldivar said Friday in a statement that while Hogan Lovells has performed well in recent months and even exceeded its revenue from this time last year, there are "continuing uncertainties in the market for 2021 and [the firm needs] to be well-positioned to weather what could be a more challenging period."
In a July interview, Zaldivar said he was "pleasantly surprised" with Hogan Lovells' financial performance during the pandemic but that demand for legal services had dropped and that clients may not be able to pay bills.
He said in Friday's statement that "even without the pandemic we would have been making some changes to the structure of our business services teams as part of our continuing program of ensuring the shape of our business is right for the needs of our clients."
Other firms that have cut staff this year, including Venable, Davis Wright Tremaine and Katten Muchin Rosenman, have provided similar reasoning.
Labor Department data suggests tens of thousands of law firm staffers have lost their jobs in 2020, Nakia Bradley-Lawson, president of NALS Inc, an association for legal professionals, told Reuters last month.
Hogan Lovells, like many other firms laying off staff, has also in recent months ended austerity measures it put in place earlier this year to save cash amid the pandemic.
Legal industry consultants and recruiters have said that mix of layoffs for some employees and restored compensation for others is in part an effort to reduce costs without losing legal talent to firms that haven't cut pay.
Hogan Lovells is one of the largest law firms in with world, with about 2,600 attorneys and more than 40 offices.
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