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I don’t see why you wouldn’t tell. Especially if they are different types of jobs/firms or in different cities etc. Not every 1L gets a decent job for the summer between 1L and 2L so if they do, definitely want people to know. I knew summer associates who split the summer between 2 firms - does that not happen anymore?
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Are they worried that saying they are going to be at a small firm for 1L summer will be viewed negatively by 2L biglaw interviewers? I’d be honest because a vague non-answer would make me assume they have no job at all lined up. If they have the grades for a biglaw interview I wouldn’t worry about it at all. The point is that they’re getting real-world legal experience and working instead of hanging out doing nothing. If anything, being a SA in biglaw for 1L would make me wonder why they’re considering another firm - did the firm not invite them back? Are we a backup choice? We don’t want SA offers that are going to be rejected or to make them to people we aren’t going to ultimately want to extend full time offers to.