Despite the gross revenue decline, the firm’s revenue per lawyer climbed by 2% to $568,713 and its profits per equity partner increased by 4% to $521,756. The firm attributed the gain to the lower headcount at the firm. In 2010, the firm’s total headcount dropped 7.5%, a decrease of 45.7 full-time equivalent lawyers to 567.4 lawyers. The firm’s total number of partners also dipped by 4%, a decline of 11.6 FTE equity and non-equity partners to 265.8 total partners.
Marianne Short, managing partner at Dorsey & Whitney, said that the firm is now finding ways to increase to start increasing its gross revenue. “The firm continues to manage expenses carefully.” She added: “The decline in total lawyers reflects movement of some of our younger lawyers to jobs with clients. But Dorsey is looking for good lateral hires with books of business.”
In 2009, Dorsey cut about 8% of its expenses, which resulted to an increase in the firm’s net profit by 1% to $118.4 million.