Holland & Knight is furloughing some workers, cutting partner draws,and reducing salaries for associates and staff in response to the economic downturn caused by Covid-19.
The firm will employ a progressive scale to reduce partner draws the most for those who make the most money, according to a firm statement issued Friday. On average, those cuts will be 25%.
The 1,200-plus lawyer firm joins a long list of U.S. and international law firms taking cash-saving measures as they prepare for a severe downturn caused by the largely idled global economy. Firms are cutting salaries and some are furloughing lawyers and staff.
The latest jobs report from the U.S. Labor Department indicates 64,000 jobs in the legal industry were eliminated between mid-March and mid-April.
At Holland & Knight, associates, counsel, and senior professionals will see their salaries reduced by 17.5%. Staff who make between $75,000 and $150,000 a year will have their pay cut 10%. Those who make more than $150,000 will receive a 15% pay cut, and anyone who makes under $75,000 will not be impacted, the firm said.
The number of staff who will be furloughed was not disclosed, but the firm said those employees will receive benefits. The measures will be in place for the next 60 days, and could be continued, amended, or eliminated after that, the firm said.
Holland & Knight in 2019 concluded 10 straight years of revenue and net income growth, the firm said. Its revenue hit the $1 billion barrier last year, according to the latest AmLaw rankings.
“The firm entered the current crisis in a strong financial position. Nevertheless, it is not immune from the effects of the economic downturn,” Steven Sonberg, the firm’s managing partner, said in a statement. “In order to meet the challenges we face, we are asking all members of Holland & Knight to sacrifice in some way as the firm continues to evaluate its operations. Our proactive, but measured, approach to management has served the firm well during the past and we are confident it will do so during this crisis.”