Law Firm Lays Off Hundreds of Employees as AI Reshapes Legal Work

Law Firm Lays Off Hundreds of Employees as AI Reshapes Legal Work

A Futurism report details how a major global law firm has cut hundreds of jobs — largely in support and junior positions — as it embraces artificial intelligence to streamline operations and reduce costs. The Chicago-based firm Baker McKenzie reportedly eliminated between 600 and 1,000 roles, representing roughly 10 % of its total workforce, with the layoffs concentrated in areas such as research, secretarial functions, administrative support, and “know-how” teams that provide internal knowledge resources.

According to the report, AI was explicitly cited as a contributing factor in the restructuring. Legal teams across the industry are increasingly using AI tools for document review, contract analysis, due diligence, and research workflows — tasks that historically involved large teams of junior professionals and paralegals. As these systems improve, they can perform many routine tasks faster and at lower cost than traditional human labor, prompting firms to rethink staffing models.

Critics have argued that characterising the layoffs solely as “AI-driven” can sometimes reflect AI-washing — a trend where companies emphasize AI as a justification for cost-cutting rather than a mature technological replacement fully capable of performing all aspects of experienced human work. While the technology can automate structured tasks, complex reasoning, client interaction, and ethical judgment still require substantial human oversight. This raises questions about how firms balance technological efficiency with quality of service.

Industry observers note that this development is part of a broader shift in knowledge work where AI augments capabilities but also alters employment structures. Support staff and junior roles are increasingly vulnerable as AI tools handle bulk tasks, pushing human professionals toward more strategic, creative, and client-facing responsibilities. The event highlights ongoing debates about the future of work, responsible automation, and how organisations can integrate AI while maintaining ethical labor practices.

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