Stealth Layoffs at McDermott Will & Emery?
Over the past few weeks, there has been a lot of rumbling over at McDermott Will & Emery. One tipster succinctly explained what many MWE associates are seeing:
[T]here is literally no work ... nothing at work for a few weeks. Apparently everyone is waiting for the axe to fall. You should watch MWE like a hawk.
More like a buzzard. We've been circling over McDermott for days, waiting for something to fall. So far, we've not yet been able to speak with a single MWE associate who will stipulate that they have been laid off. But sources both inside and outside MWE claim that a number of stealth layoffs have taken place at the firm over the past month.
The number many tipsters are coming up with is 20.
Now, that number seems high to us. A major firm like McDermott usually can't keep 20 people silent for all that long. However, when we approached the firm with our information, they would neither confirm nor deny the reports about firm-wide layoffs. A spokesperson for MWE only had this to say:
As a matter of policy we do not publicly discuss personnel matters.
Additional tipsters weigh in after the jump.
As we understand it, these layoffs -- if true -- have been focused in MWE's D.C. and L.A. offices. We have some reports about layoffs in New York and Chicago, but most of our information is coming out of D.C. and L.A.
We don't yet have a good idea of which practice groups MWE might be cutting.
We also believe that some McDermott associates were laid off so "stealthily" that they didn't even know they were laid off until an attorney placement service called them. According a tipster, MWE works with an outgoing-attorney career assistance company. A number of associates received calls from that placement and counseling service before they were told by management that they were fired.
That's a tough way to find out you're no longer needed, but it's better than a post-it note on your computer screen.
Finally, we also understand that at least some of these attorney reductions have hit the class of 2007. If it turns out that these are "performance review" layoffs, it'll be difficult to explain how associates who have been there less than 18 months performed so poorly that they had to be axed.
Meanwhile, we are still waiting to see how McDermott's final bonus numbers shake out. Remember that they announced that they were sticking to their early bonus plan, but left the door open on what their final bonus package was going to look like.
Whether you are interested in bonus news or layoffs news, interesting things are happening at MWE. We'll keep you posted as more information shakes loose.
Earlier: Associate Bonus Watch: McDermott Will & Emery is Sticking to the Plan ... For Now
(182) Comments
FIRST YEEEEEEEEEEEAAAAAAAAAAAAAAHHHHHHHHHH!
first for the first time?
3rd
crunch one
NOT FIRST!
YAY!
NOT FIRST!
YAY
blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah blah
do the boutiques have work
Who's MWE? Where's there head office? How many attornies? Where do they fall on the vault ranks? Why should I care?
the first thing is so stupid and annoying, particularly when you are signed in as a guest.
Will the axe fall like a tomahawk? I am so tired of reading about this. Can we talk bonuses.
if you don't spell attorneys right you don't need to worry about biglaw.
Eleventh!
If you don't capitalize, you don't need to worry about Biglaw.
Totally false. SkaddenDC is spreading this rumor because they are threatened by this up and coming powerhouse.
Jewish Incisor
SkaddenDC is like the Titanic after it hit the iceberg -- slowly taking water and rearranging all the deck chairs won't help.
Goodbye.
Glub.
This would never happen at WILDMAN HARROLD because they have a totally paperless office and really nice chairs in the reception area.
Hey # 7 - you should take the Facebook "there, they're, their" test. My guess is that "there" is no possible way you score over 33%. As for MWE, sounds like "they're" not doing so well with "their" current financial situation.
So there.
MysTTTal
There are no secrets to being first. It is the result of preparation, hard work, learning from failure.
-1
"who will stipulate that they have been laid off"? Would they admit it privately but not enter into a written stipulation?
Does using the word "stipulate" make you feel like a lawyer, Elie?
Bizarre -- I tried to find "attornies" in my dictionary, but my dictionary exploded.
On the other hand, google has tons of hits for that spelling. Are there that many people who screw it up, or is it an acceptable variation in someplace? (other than my dictionary, where it does not exist)
Yes, the boutiques have work
"According a tipster"?????? UGH! TYPOS! UGH!
Yes, the boutiques have work
Where are the MysTTTalites.
"...if "performance review" layoffs, it'll be difficult to explain how associates who have been there less than 18 months performed so poorly that they had to be axed."
Elie, probably a while since you were in private practice. Assure you that 18 months can be more than enough time in some cases.
MWE is the type of firm trying to be a big boy (aka top 25 vault) but not there. Firms like this will let people go under the guise of "performance review" when it's really because they're getting smoked both in lit. and corporate. I have a friend there who says it has been dead slow for a year now. Guess MWE is also technically in recession.
You are either FIRST in the comments section or you are last...simple as that.
7, you are a moron, have fun working in housing court.
I know someone who got the axe recently in the New York office. It is good to see this making ABL, it'll probably make it easier for her to get a job if it is known that there were serious lay offs.
Waiting around for work and just sitting there until someone finds you would be a good way to get laid off at a non big law firm. You entitled juveniles did not get that job by sitting on your ass. Go out and find something to do.
Guys from my high school used to not stipulate that they had been laid (off) all the time. It was no big deal.
Frat Stud
I demand definitions for the following terms: PEANUTS, CHEESE, and PRETZELS.
God damn SkaddenDC trying to ruin it for the rest of us hard working folks. I admonish you Mr. SkaddenDC.
A pox on you and yourn.
Overheard a partner from MWE LA talk about imminent layoffs in the near future. This was last week. And, yes, I'm serious.
31st!
Imminent lawyoffs. How imminent. How near.
No idea. Partner said, "None yet, but they're coming..." in response to a question about layoffs.
-33
Is MWE one of the firms that also canceled it's office party this year.
ABL = A Bovetha Law. I think we have found a replacement for MysTTTal!
Speaking as an associate at MWE, I can confirm that approximately 20 associates have been let go in the NY office alone in the past year. We were told in a meeting that none of the layoffs was attributable to lack of work, contrary to what the associates are told when they are let go (ie, that it is not performance-based, but as a result of low productivity, aka low billable hours).
Does anyone care about MWE?
Does anyone even care about MWE?
Only "lay-off" I know of so far was actually really a performance review issue, but the associate is spinning it. I'll bet actual layoffs are coming, though.
"A number of associates received calls from that placement and counseling service before they were told by management that they were fired."
Wow, talk about tacky. But still not quite as tacky as sending an email beforehand telling associates to expect layoff phone calls throughout the day. You're Still #1, Brown Rudnick!
34 = Fail.
29, how are associates supposed to get work if the partners don't have any?
12 - capitalization is so 2004. grow up.
Strong, confident firms (see White and Case) will let lawyers go and admit to the vanquished as well as to the public that it was an economic decision and not due to any fault of the laid off. MWE, a lower-tier firm with confidence problems (oh no, what will people say if we admit to lay-offs? ) doesn't have the guts to publicly say the truth - that its economic prospects and non-generating partners necessitate letting people go.
7--TTT moron
"Strong, confident firms..." - sounds so sexy. Where can I meet one of those?
39 - Posting from his home computer - obviously.
I can confirm 39's statement. Layoffs are due to a lack of work at the firm. It's sad.
The truth is that it is not black and white. Yes, because of the economy, and the extremely low attrition, law firms have way more headcount than they need and would like to reduce headcount. One way to do that is a "layoff". A better way is to push partners to get evaluations done and get rid of anyone who is not cutting it. In boom times these folks may have hung on a little longer, but they were never going to make it in the end. So what should we call these firings? Layoffs isn't accurate. But they are, at least partially, driven by the economy. Whatever you want to call it, this is what is happening in BigLaw right now.
51 - also from his home computer.
This is happening at every firm.
DLA laying off people big time. Not sure it's been covered on ATL.
Fenwick has troubles apparently.
Whole world going to hell, especially at San Francisco law firms.
26- what distinguishes a V-25 from a V-30? Are you the same douchebag who refers to a T-14 school because you went to #14, so you have to include it in the top ranking? I've heard of V-50 and V-100, but V-25 is a new one. Hopefully your firm goes from #25 to #19 so next year, you can shit on everyone who isn't at a V-19 firm. Now, I'll take my schlong out of your mouth so you can respond.
evidence is fun - hooray finals!
How are these firms allowed to lay all these people off? I was under the impression that SkaddenDC patented that business practice years ago? Any word that SkaddenDC is looking to bring legal action against a place like MWE for copping their steez?
Is it possible that SkaddenDC is selling its trade secrets and cutting-edge firing techniques to other similarly deflated law firms in an effort to keep the lights on til the end of the year?
mmmm vegetable soup..
55- do you have any scoop on the DLA offices or departments affected?
52 is right on the money
Lots of people were laid off at MWE earlier this year, many of the forign LLMs from the class of 2007 as well as some second year, so this is old news. Proskauer also had a bunch of layoffs two months ago and those weren't mentioned either. Safe to say 90% of the firms have had some form of layoffs
56 - I went to a T-87 law school (tied with three other schools). If a law school isn't T-87 it's nothing.
You know what would be awesome is if the commenting process on this blog was improved.
56 - I went to a T-87 law school (tied with three other schools). If a law school isn't T-87 it's nothing.
I farted
7, 40, et al:
How can you say such a thing? MWE is a thousand-lawyer firm that grossed almost a billion dollars last year (14th on the AmLaw list). To proclaim that you don't care about their fate is to proclaim utter ass-hatted ignorance about this country's legal landscape.
That was last year - take a look at them this year. If the attorneys could leave they did.
That was last year - take a look at it this year. If the attorneys could leave they did.
66 - comment of the day
67- don't make fun of my ass-hat please
47 is right. There are 2 ways to go. MWE went one. Also, I've heard their NY lit. dept. is totally reliant on one big rainmaker bringing in all the business. The rest are dead weight.
the angry mob is coming for their quarters
Waiting around for work and just sitting there until someone finds you would be a good way to get laid off at a non big law firm. You entitled juveniles did not get that job by sitting on your ass. Go out and find something to do.
__________________________________________
That's right! Just barge into random partner's offices and DEMAND assignments! Don't take no for an answer--if they claim not to have anything for you, lay down on the floor and refuse to move into you have a stack of docs to review!
75!
58 NAILED IT!
Any truth to the rumor of stealth hirings at SkaddenDC? I hear since no one wants to jump aboard that sinking ship they've been trying to scoop up 2Ls against their will and without their knowing.
What years are most of these layoffs for these firms? I know they are in RE and Corporate, but are they also mostly 2008, 2007, 2006 grads or is it random?
of course there are layoffs happening at all fims - the work just isn't there.
the work will come back soon (say by late 2011) but in the meantime the firms have to have staff cuts
If you do some work instead of worrying about getting fired maybe you wont!!
78 I think you're way off on when the work will come back. Most global recessions since the 1960s have lasted less than two years. Things will be back to normal by late 2009.
72 - I used to work there and heard something similar.
I still correspond with two associates at MWE NY.
One says yeah, a lot of people there are (still) really slow. The other told me about stealth (and not so stealth) layoffs of at least 2 associates in the NY lit group.
When I was still there a year ago it was already pretty slow. Those who had the ability (IP in particular) started to slowly go elsewhere on their own.
What about Paul Hastings?
Watch Milbank too...definitely big news about to break there. Layoffs almost a certainty. Rumors of no bonus as well.
biglaw needs to shrink by 35-50% at the associate level - these painful times are merely the first step of the healing process
the next step will be the reduction in class size of various lower ranked (but quality institutions of course) schools such as nyls, cooley, northwestern, etc
why aren't all these big firm partners out bringing in work? isn't it simply a matter of the top dogs getting retained for all the big ticket m and a, vc, etc work????
why do they blames the associates?
85 - Nothing to do with BLAME. Its simple self interest....if income is low the partners aren't going to fire THEMSELVES.
86 - Are you suggesting, sir, that associates are being let go because they are unprofitable? I dare say you are quite the Vulgarian - a typical American if you will! Good day sir!
EIGHTY SEVEN!
YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES
88 - NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO
The Milbank post is nonsense. Pockets of slowness, but the firm is overall very busy. The Lehman matter alone is massive.
Five dollar. Five Dollar. Five Dollar footlongs.
82 - What do you know about Paul Hastings?
teh pardners need to go out and git all that MA and VC work just waiting there for servicin' and whatnot...
it aint like this is the biggest, baddest slowdown since the great de pression or something
what's the news on fenwick?
Gorillas in the MysTTT
Hillary!!!
12, were you not taught that is incorrect to use contractions in formal writing? I am assuming you were writing formally since you are so adamant about correcting other people
33 sucks cock, heard the rumor, he sucks it, and takes loads in his mouth.
52 is a MWE partner troll. Partners get to work finding work for associates you lazy no good pieces of TTT!
Stop trolling on our board! Go to Amlaw or whatever!
99 - Fuck you. This is not your board. And someone has to educate you morons.
99, right on! Maybe if 52 worked on his/her "impressive" $15-30K book of business instead of "educating" us on prevailing market conditions, all the poor MWE associates would have work to do and not be laid off.
I think we need some realistic advice on this board. hope you whining losers don't chase all the partners and senior people away. then we will be left with nothing but a bitch fest of juniors and law students.
80 - Atty turned banker here - Go read The Black Swan and please tell me where you work so I will know which firm NOT to use on any future deals. The past is not the best or even a good indicator of the future. Only a fool would think so.
any news on holland & knight?
What's up with the real deal ?
Why no news ?
And another question ? Does anyone start there as an associate or do they call all first year associates law clerks ?
Or does everyone from Fordham become a law clerk ?
beware of the brown dragon!
Jeffries Interviewer: So, Commenter @ 103 - top 15% in your class at Fordham Law, 2 years at Skadden. Very impressive. Why are you qualified to be a banker, though?
Commenter @ 103: I read the Black Swan.
Jeffries: Wow. The one by Taleb? Impressive. That book has gravity. And he, like, predicted everything that is happening basically. You're so hired.
I wonder if 103 also read Fooled By Randomness. If he did, he is probably qualified not only to be a banker, but maybe even Fed Chairman.
103 -
Read the Black Swan, would not recommend such a self-gratifying, ego-fulfilling, "I know all because I know I know nothing" piece of shit to anyone. Though I d agree with him that you can afford to be compassionate or courteous if once in a while when least expected you mess someone up, just to prove you can walk the walk.
I agree with 52. It stinks to get fired, but we all know there are associates sliding by with as few hours as they can muster, just collecting the money for a few years and then they're outta there. In the boom times those associates were needed, but now, if someone has to go so others have enough work to stay, it's going to be those associates. Not all of the layoffs posted on this website are unrelated to performance.
Is MWE the firm from "The Practice"?
Lit, Corp, Energy, Insurance in DC. 20 plus there over the last few months. 2004 and younger. More just told.
Who was just told? What percentage (approx) of the associates in the DC groups is that?
I had guys in my high school all the time.
Paul Hastings might be ok....they just hired some mid-level litigation associates...but i dont now if they actually started, just that they signed offer sheets
this is surely the black swan! the odds of a best selling airport book predicting this, the gravest financial crisis EVAR were asstronomical!
litARALEE no one saw a housing problem until basically last month....it was a TRUE BLACK SWAN!!!!! NO ONE COULD HAVE PERDICKTED THIS!!!!
Spring of 2009 will not be pretty.
I hope my offer does not get rescinded.
*nervous 3L with V50 offer*
Im a former MWE associate that was laid off after only a year. Perfect reviews until the work dried up. Than with no explanation, I was called into the partners office and laid off for "performance reasons." Im not the only one as I know of at least 5 other associates that were told the same thing. MWE needs to man up and tell the truth instead of saying its for "performance reasons."
what about mwe palo alto???
MWE Palo Alto end of year reviews take place this week, so if there are any "layoffs" they could take place this week.
Were any of the MWE associates laid off for "performance reasons" given any severance?
Any specific information regarding the LA office?
If you work for PJ you've still got plenty of work.
PJ?
What's the breakdown of associates let go this week in DC? Have any partners been asked to leave?
If you let the individuals with the lowest performance reviews go, even though you would have kept them around for a while in better economic times, does that fall into the category of economic lay off or fired for performance reasons? I think that's what's happening at MWE, and frankly, it seems like it would be fair to describe it either way.
So what are laid off people supposed to do for a living till 2011?
103 - please tell me where you work so I can come over and kick your ass. Tool.
103, what would you say to the technical analysts who pretty much use the past to make decisions on stocks?
The MWE energy atty's in DC all told me things were booming when I interviewed there. I am glad I did not accept.
Cleary matched Cravath. Do you have the memo yet?
118 - I used to work there (left on my own) and have heard similar stories. BS "performance" layoffs.
I actually talked a 2L into taking a summer spot at MWE in the fall of 07 when I was there and things were still good. Hope I didn't accidentally screw the poor bugger over.
MWE Palo Alto is expanding into Heller's old digs. I'd be surprised if they laid anyone off for economic reasons.
MWE associate here. Yes, there are definitely stealth layoffs happening. I know of three myself and have talked to someone higher up who says firm-wide layoffs are happening due to economic reasons. Additionally, anyone who says MWE is busy right now is lying - things are really really slow.
Any news on Schiff Hardin?
-concerned Schiff assoc.
Have associates from MWE's NY office been laid off?
What's the likelihood that 3L offers will be rescinded?
Another MWE assoc here.
133 is partially correct - some depts. are definitely slow and have been for most of this year (and getting even slower), and some offices are much slower than others. But there are pockets of people who are busy and who will make hours easily (myself included).
129 - I bet the energy group WAS booming when you interviewed. Look around at all of Biglaw - not much is "booming" in any department, at any firm.
103, so I guess all those hedge fund guys are complete fools?
The current mess is part of a long term cycle. It will rebound, and then in about 12 - 14 years happen again.
MWE associates--do you have any specifics as to which groups and what offices are being affected?
138- I'm not a MWE associate but I have a friend there who was affected by this, so I can tell you it is at least in the DC office.
120- my MWE friend was told it was performance related and no severance. Though they apparently give them some time to find something else.
I'm a 2008 trial associate at McDermott and can say that, at least in my office, every other associate is extremely busy.
I am not so busy at this point, as everyone in the office encouraged me to enjoy the first few months before the new fiscal year, but I can assure you that every associate in this office has as much work as they could ask for to hit bonus levels. Those that don't hit bonus levels do it out of choice, and no one minds so long as hours are respectable.
We also had reviews this week, and everyone whom I've spoken to has said they went great.
Further, McDermott has been aggressively hiring lateral associates from other top vault firms in offices around the country since I've been here, I've heard of no one losing their job, and don't think there's a bit of truth to these rumors. It's pretty easy to attribute one's firing to the economy or assert that it was due to a contrived performance review, it's also just