Is the economy getting any better? Maybe yes, maybe no. Who knows? But you know how your bottom line is looking. Is it up or down? If it’s down and it’s been down all year then get your head out of the sand and do something about it.

It’s time to cut costs. Cut, cut, cut.

Today’s cut? Employees. Look, no one wants to think about laying anyone off, but the truth is that staff is a law firm’s number one expense. Law firms, big and small, are laying off staff and lawyers everywhere you look. Many of those laid off lawyers are opening practices and competing for your clients.

So, it’s time to ask yourself the hard questions: Do you truly need all of your staff? Do you have any employees whose performance is disappointing? Is everyone remaining busy, or can the tasks of a part-time employee be given to a full-time employee, eliminating the part-timer altogether? If you have hourly employees, can you reduce their hours?

One mistake that some firms make is laying off employees, only to hire them back as soon as the firm has a couple of good months. Be careful. If the bottom drops out again, letting employees go a second time will have an extremely negative impact on your remaining staff.

It’s best to let people move on and find stable employment elsewhere. Only bring back permanent employees when you feel confident that you can afford to keep them long-term.

Another option, cut pay across the board. That’s what Womble Carlyle is doing. Will it work? Maybe. I suppose it depends on the market. We know it’s soft right now but you can be sure some of those employees will feel slighted and will start exploring their options.

If your bottom line is down, then fix it. Bring it up. Stop waiting.