Overview of the Article
The phrase “Big Law’s Retreat Is Wider Than You Think” refers to a recent article published on November 9, 2025, in The American Lawyer (an ALM publication), which examines the ongoing contraction and strategic pullback by major U.S. law firms—commonly known as “Big Law”—in various global markets. The piece argues that this retreat extends beyond high-profile exits from China, encompassing broader geopolitical, economic, and competitive pressures affecting Big Law’s international footprint. Written by Asia Editor Lulu Yilun Chen, it highlights how firms are reevaluating overseas investments amid rising costs, regulatory hurdles, and shifting client demands.
Key Points from the Article
- China Exits as the Tip of the Iceberg: While the departure of firms like Paul Hastings and O’Melveny & Myers from mainland China in 2024 made headlines, the article notes that similar retreats are happening quietly in other regions. For instance, several AmLaw 100 firms have scaled back or closed offices in Southeast Asia (e.g., Vietnam and Indonesia) due to low profitability and intense local competition.
- Geopolitical and Economic Drivers:
- U.S.-China Tensions: Escalating trade wars and national security concerns have made China operations untenable for many firms, with clients pulling back on cross-border deals.
- Post-Pandemic Realities: Remote work has reduced the need for physical offices, while inflation and talent shortages have inflated overhead costs abroad.
- Client Shifts: In-house legal teams at multinationals are handling more routine work internally, leaving Big Law firms to focus on high-value, U.S.-centric matters like M&A and litigation.
- Wider Implications for Big Law:
- Talent and Morale: Associates and partners are increasingly opting for domestic roles or exiting to in-house positions, exacerbating the “Great Resignation” trend in legal services.
- Financial Pressures: Firms like Kirkland & Ellis and Latham & Watkins, which aggressively expanded globally in the 2010s, are now facing margin squeezes, with some reporting 5-10% drops in international revenue.
- Rise of Alternatives: The article points to the growth of regional players (e.g., Singapore-based firms) and “New Law” models like legal tech platforms, which are capturing market share from traditional Big Law.
| Aspect | Examples of Retreat | Broader Impact |
|---|---|---|
| Geographic | China (full exits); Southeast Asia (office downsizing) | Reduced global prestige; focus shifting to U.S. and Europe |
| Economic | High office rents in Hong Kong; low billable hours abroad | Profit margins down 3-7% in affected offices |
| Talent | Lateral exits to Big Tech in-house roles | Associate retention rates at 70-80% vs. 90% pre-2020 |
| Strategic | Pivot to AI-driven services | Increased M&A in U.S. markets to offset losses |
Context and Reactions
This retreat aligns with wider industry trends reported in 2025, including a 15% slowdown in global law firm hiring (per a Thomson Reuters survey) and a surge in Big Law alumni moving to roles at companies like Google and Amazon. On X (formerly Twitter), the article has garnered limited but professional buzz, with shares from legal news accounts like @AmericanLawyer and @lawdotcomINTL, emphasizing its relevance for firm leaders. One practitioner account (@GlugoverLaw) cross-posted it alongside local promo, suggesting it’s resonating in niche legal circles.
If you’re in Big Law or considering it, this signals a maturing market: fewer “empire-building” expansions and more emphasis on sustainable, high-margin practices. For deeper dives, the full article is available on Law.com (subscription required). What specific angle interests you—e.g., impacts on associates or firm strategies?