Cooley to Delay Some First-Year Associate Start Dates by Year

Cooley LLP is asking some of its incoming first-year associates to defer their start dates for another year in exchange for a $100,000 stipend.

The Silicon Valley-founded law firm recently reached out to incoming corporate associates, offering them three options ahead of their scheduled January start dates, according to two sources familiar with the matter.

First-year corporate associates can push their start dates to next year and get a stipend. They can instead opt to start in the corporate group in January, as previously planned, or switch to another practice area that has more work to go around with the same start date.

The moves are designed to shrink the firm’s incoming corporate class amid a slowdown in demand.

“We can confirm that due to current market conditions we will be reassigning a limited number of incoming corporate associates to alternate practice areas,” Cooley said in a statement to Bloomberg Law.

“We are also offering a voluntary full year deferral to this same limited group of incoming associates along with a stipend to compensate for their deferral. We continue to be focused on ensuring that all our associates have the opportunity to receive meaningful development opportunities throughout their tenure with us,” the firm said.

Cooley had already delayed the start date for its first-year class from November to January 2024. The firm late last year laid off 150 attorneys and staff across its US offices, calling it a “painful but necessary” step related to slowing work.

The firm, whose client roster includes some of the top tech companies, was one of Big Law’s top recruiters during the pandemic, adding partners and associates from competitors. However, shifting markets have stalled demand for corporate and deals work and forced some law firms to trim headcounts and delay start dates.

Fenwick & West recently said it would postpone the start date for its first-year corporate and technology transactions associates to Jan. 16, 2024.