August 2025 – Law firm Willkie Farr & Gallagher LLP is facing internal upheaval. While cutting administrative staff, the firm is simultaneously offering attractive retention bonuses to associates—an effort to curb a growing trend of departures.

Key Developments at Willkie

• Staff Reductions: Willkie has laid off several employees in its San Francisco office, a decision that follows the departure of approximately 20 lawyers from the same location.
• Retention Incentives: At the same time, the firm is dangling generous bonus packages to both summer associates and experienced attorneys in an attempt to stabilize workforce morale and deter further exits.

Context Behind the Exodus

This internal reshuffling appears tied to broader fallout from a controversial agreement between Willkie and the Trump administration, which has already prompted multiple partners to defect to competitors such as Cooley—where they felt better aligned with the firm’s stance against certain executive actions.

Strategic Implications for Willkie

• Mixed Messaging Risks: The simultaneous firing of support staff and incentivizing of associates signals conflicting priorities, potentially fostering tension and uncertainty within the firm.
• Retention vs. Reputation: While retention bonuses might offer short-term relief, the firm’s public image and morale could suffer if key departures persist.
• Competitive Pressure: Rival firms, especially those openly resisting contentious political arrangements, may gain an upper hand in attracting disaffected talent.

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