Orrick Lays Off 90 Lawyers and Staff, Delays Start Dates

Orrick Herrington & Sutcliffe is laying off roughly 90 attorneys and staff and delaying its incoming class start date due to what the firm is calling reduced demand amid market uncertainty.

The San Francisco-founded firm is letting go of 40 associates and 50 staff members accounting for roughly 6% of the firm’s global workforce, Orrick confirmed in a statement on Tuesday.

In addition to layoffs, Orrick is delaying the start date for its incoming first year class until Jan. 16, 2024. The firm said it is providing its class of 2023 with a $15,000 stipend as well as additional stipend to purchase health insurance.

The layoffs and delays are “a response to a convergence of market forces: reduced client demand in some areas related to market uncertainty and the impact of technology, data and the evolving workplace on the type of support we need to serve our clients and operate our firm,” the firm said in a statement.

Those affected will be provided with a transition package that includes salary, COBRA reimbursement, outplacement services and wellness resources, the firm said.

“We believe this action is the most fair and transparent way to advance our strategy and ensure we have ample work opportunities for our team,” the firm said.

Orrick is the latest Big Law firm to make reductions in workforce and delay start dates amid slowing demand for legal services as transactional and dealmaking activity continues to be slow through the first half of the year.

Cooley, which late last year announced it would be laying off 150 attorneys and staff across its US offices, said it would delay its first years’ start date to January 2024. Last week, the firm contacted a “limited number” of incoming corporate associates and offered them the option of a voluntary deferral to join Cooley with the class of 2024 and be paid a $100,000 stipend.

Gunderson Dettmer, the Silicon Valley-based law firm that advises startups and venture capitalists, said in April it would let go of 10% of its attorneys, paralegals and staff and its incoming associates graduating in the spring might have their start dates deferred on a case-by-case basis.

Kirkland & Ellis also made cuts to its associate ranks following mid-year performance reviews in April.

Fenwick & West said it also will be delaying the start date for its corporate first-years to January 2024.

Orrick, which works with clients in the technology, energy and finance sectors, recently completed a merger in February with Washington-based financial services boutique Buckley.