The legal profession has faced multiple waves of change over the past two decades—and now, a groundbreaking new study offers the most complete analysis to date of how law firms have handled workforce reductions across that period. BCG Attorney Search has released “The Legal Industry Layoff Report (2008–2026)”, a data-driven report examining nearly 20 years of layoffs, market disruptions, and recovery patterns within the U.S. legal sector.
Learn more from this report: The Legal Industry Layoff Report (2008–2026)
The report provides a detailed look at how law firm layoffs have evolved from the Great Recession of 2008 through the COVID-19 pandemic and into the post-pandemic economy. It highlights the cyclical nature of the legal job market, revealing how external economic pressures, shifting client demands, and firm-level management decisions have collectively shaped hiring and retention trends.
According to BCG Attorney Search’s findings, more than 28,000 attorneys have been laid off since 2008 across the nation’s top firms. The most severe period occurred during the 2008–2009 financial crisis, when over 5,600 lawyers lost their jobs. A second major wave emerged between 2020 and 2022, when nearly 3,000 attorneys were affected amid pandemic-related restructuring. More recently, “stealth layoffs”—disguised reductions tied to performance or internal realignment—have become increasingly common, accounting for up to 70% of all attorney exits in some firms.
The report also breaks down layoffs by practice area and geography, identifying which specialties and markets have remained more resilient. Practice groups like bankruptcy, healthcare, and employment law tend to offer more job security during downturns, while corporate, M&A, and private equity practices experience sharper declines. Regionally, cities with diversified economies or strong government sectors—such as Washington, D.C., Philadelphia, and Minneapolis—have shown greater stability than finance- and tech-heavy hubs like New York or San Francisco.
A key innovation introduced in the report is the Layoff Resilience Score, a 0–10 rating that measures law firms’ historical performance during layoffs. The score considers transparency, severance practices, internal mobility options, and long-term staffing policies. This metric allows attorneys to gauge their firm’s stability and prepare accordingly.
Beyond data, the Legal Industry Layoff Report offers practical strategies for attorneys at all levels. From early-career associates to senior partners, readers will find actionable guidance on identifying early warning signs of instability, maintaining professional visibility, building client relationships, and managing career transitions during uncertain times.
Learn more from this report: The Legal Industry Layoff Report (2008–2026)
