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Writer's pictureKandice Thorn

The Scarlet “L”? Let’s talk about layoffs

Updated: Jul 7, 2023

Layoffs are often seen as a taboo topic in the legal industry. However, I think it’s time to destigmatize layoffs. Layoffs are a necessary tool for businesses to remain competitive and profitable in the face of economic challenges, and the legal industry is no exception. To be clear, I am not suggesting that layoffs are desirable, and I do not mean to trivialize the stress they put on companies and especially on the employees who face layoffs. They are traumatic and stressful, but at times they are necessary. Facing this reality head-on will allow for a healthier approach to layoffs in our industry.

First, layoffs are a business reality. No industry is immune to the ups and downs of the economy. Law firms face the same challenges as any other business – economic downturns, changing client needs, and increased costs. Layoffs are a tool that firms can use to stay afloat during tough times. It’s important to destigmatize layoffs as a business practice, so that when they do occur, it is not necessarily seen as a sign of failure or incompetence – for the firm or the employee.


Second, destigmatizing layoffs can help firms be more proactive and transparent about their financial situations. Many firms avoid speaking candidly about layoffs because they are afraid of negative publicity and the impact on employee morale. However, by being upfront about the reasons for the layoffs and the steps the firm is taking to address the situation, firms can build trust and respect with their employees and credibility with clients. This can also help to reduce the impact on employee morale by giving them a clear understanding of the situation and what the firm is doing to address it. When a firm addresses these issues proactively, it also reduces the risk that the rumor mill will step in to fill a void of information, which can ultimately make things worse for the firm.


Third, increased transparency around layoffs can help to reduce the emotional toll that layoffs can take on employees. Layoffs are never easy for anyone involved, but by introducing transparency, employees can better prepare themselves for the possibility of a layoff and take steps to protect themselves financially. It can also help to reduce the stigma that often accompanies being laid off, making it easier for employees to find new jobs and move on with their careers.


Finally, the stigma around layoffs can make it difficult for firms to carry them out in a way that is fair and non-discriminatory. Firms may make decisions based on subjective factors such as personal relationships or biases. This can lead to resentment among employees who feel unfairly targeted, and can damage the firm's reputation and bottom line. Through destigmatization and transparency, firms can ensure that layoffs are carried out in a more objective and strategic manner. This can help to minimize the impact on employees and the firm's reputation, while also allowing the firm to make the necessary adjustments to remain competitive and profitable.


To sum up, let’s stop treating layoffs like a dirty secret. Is it bad news? Yes. But we should be upfront and honest about the fact that sometimes tough decisions need to be made for the sake of the business. When we're open and transparent, it helps employees understand what's going on and feel less blindsided if layoffs do happen. And when we destigmatize layoffs, it also helps us approach them in a more fair and logical way. Nobody likes to be let go from a job, but if we can do it in a way that's objective and reasonable, it can help reduce the emotional toll on everyone involved.


By: Kandice Thorn, Founder, WorkBetter for Lawyers

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