Why a multibillion-dollar law firm can go bankrupt: lawyer friends explain the economics
NathanpmYoung · x · 2026-10-29
Responding to Turner Novak's puzzle of how a law firm charging $1-10k/hour goes bankrupt, jonwu explains via lawyer friends that firms like Weil are essentially fixed-cost businesses: revenue concentrates in a few rainmaker partners, junior partners can't yet carry the load, and associates plus back office form one giant fixed cost center. Unlike banking or consulting, law clients are inherently portable — any partner can walk out with team and clients, making the whole structure fragile.
Related event: Big Law Firm Weil Reportedly Near Collapse as AI Questions Mount(4 posts)→
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