The legal industry’s hiring activity is off to a slow start in 2025, despite several headline-grabbing partner moves at elite firms, according to a Bloomberg Law analysis.

Many recruiters attribute the lull to strong financial performances by firms in 2024, which have left partners hesitant to switch firms until their compensation is finalized. With some seeing substantial increases in compensation, offers from rival firms appear less enticing.

“Lawyers are waiting to see what they’re going to be compensated,” said Kay Hoppe, a veteran legal recruiter based in Chicago.

This dynamic has introduced a new wrinkle in lateral hiring negotiations. For instance, a partner making $3.5 million might find a $5 million offer less appealing if their current firm increases their equity value by 20%, according to Jon Truster of Macrae, a recruiting firm.

“It’s something that needs to be worked on and considered,” he said. “There’s been a lot of high-profile moves this year. What we don’t know is what’s going on underneath that.”

High-Profile Moves Mask Broader Trends

While overall hiring remains subdued, notable moves continue to make waves:

• Cravath, Swaine & Moore hired Andrew Finch, a former Paul Weiss partner and Justice Department official.
• Kirkland & Ellis poached a five-partner group from Skadden, including high-profile trial lawyer Allison Brown, to launch a Philadelphia office.
• Cleary Gottlieb added Justin Ho, a former Orrick partner, to bolster its San Francisco presence.
• Skadden recruited Stephen Gill, a corporate and M&A specialist, from Vinson & Elkins.
• King & Spalding merged with Saudi Arabian firm Al Fahad & Partners, expanding its footprint in Riyadh.

Despite these moves, overall hiring numbers show a decline. Data from Firm Prospects reveals that the top 200 firms by revenue hired just 441 partners in the fourth quarter of 2024—down sharply from at least 725 hires in each of the first three quarters.

January Lull Expected to End

The slow start to 2025 mirrors the trend at the end of last year, with firms appearing reluctant to invest in lateral hires despite a strong financial performance.

However, historical data suggests hiring will likely rebound by the end of the first quarter, which has consistently been the busiest period for partner hiring since 2020 (except in 2022).

The high-profile hires demonstrate that elite firms are increasingly active in the lateral market, according to Mark Jungers, chief strategy officer at CenterPeak. This growing competition has reshaped the hiring landscape, with even traditionally conservative firms adopting more aggressive acquisition strategies.

Uncertainty in the Market

The heightened competition for lateral talent has created both opportunities and instability. As firms hire aggressively, they also face higher attrition rates, particularly to high-end competitors.

“There is a whole other level of competition that didn’t exist five years ago,” Jungers noted. “And at the same time, being in the lateral market does create more uncertainty and perhaps instability in those firms.”

While the market’s quiet start has raised eyebrows, many experts predict a busier time ahead as firms finalize compensation and ramp up hiring strategies. As Hoppe put it, “This is the lull before the storm.”