The economy is going to recover and I find it hard to believe that we'll be getting the best people once it does. The layoffs have already hurt recruiting and unemployment is sky high right now.
Like it or not our layoffs got the most attention. We were a V10 and we laid off a LOT of people. The first year massacre especially was bound to hurt us because V10s don't do that.
Obliterating that class and all those people was good for short term profits, but in the long run it's just awful management. This is a service industry and our position is as a provider of high end services. That requires a strong recruiting position that frankly we don't have anymore. The partners behind this decision remind me of the bonus hopping bankers and I wonder if their own short term good was what they had in mind. We'll see how many partners leave in the next few years.
What are we going to do to attract the top people? Raise salaries? As we've seen in the past the market will just follow that and we won't be able to distinguish ourselves that way.
The culture was a recruiting tool but it's long gone and even if we got it back somehow it's not going to mean much when the firm wrecks careers in a down economy.
Latham had better find a way to retain people. Though as long as we use the Cravath model that just isn't going to do it.
Also, I wonder how much of that 5% decline in revenue was caused by the overfirings. In my office everyone was absolutely slammed and I can see the lack of capacity decreasing revenues.
Way to blow our competitive advantage Dell, Gordon, and the rest of you.
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