Mystery Meeting Set at Katten: 2:00 p.m. (CT) Today
Something is going down at Katten today. Multiple tipsters report that a firm wide meeting has been scheduled in each Katten office for 2:00 p.m. central time today. According to the email announcing the meeting, the purpose is:
[T]o discuss the Firm’s Plan for dealing with the continuing weak economy and how that plan relates to the associates.
The firm has not responded to our inquires about this meeting. But our sources report some obvious (and not so obvious) details. Katten has already been through one round of associate layoffs, and many people expect that the firm is initiating round two today.
We’ll tell you what we know after the jump.
As we understand it, layoffs have already started at Katten today. We don’t yet know the scope of these layoffs, but our initial reports suggest that around 30 attorneys will be let go.
But, what is perhaps more surprising, is that the firm could also be asking a few partners to leave the firm. A tipster reports:
[I]t is likely to include partners and that anyone who billed under 2000 last year ought to be very concerned.
Other tipsters also report that partners are likely to be let go. We don’t know how many staffers are also in danger of losing their jobs today.
Those who survive today’s cuts aren’t necessarily in the clear. Some sources are reporting that a significant salary cut is on the table for the associates that remain:
Katten has already started their layoffs this morning and a 20% pay cut can be expected for those individuals who did not lose their jobs today.
Partners being asked to leave, associates and staff getting fired, and a pay cut for everybody else? Sounds like Katten is spreading the pain around.
We’ll keep you posted once we get a post meeting report.
Earlier: Prior ATL coverage of layoffs
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First. Bam.
The entire firm plans to apply for Skadden's Sidebar Plus program.
oh boy. a friend of mine is an incoming associate at Katten
I interviewed with this firm's Charlotte office. They sent partners to the OCI, and these partners were very kind people... when they weren't staring at their blackberry throughout the entire interview. I mean, I know I'm boring, but that boring? Sweat. Shop.
Munchausen LLP. They made the whole thing up.
If the 20% salary cut is true I forsee many firms jumping on the bandwagon. They're just waiting for someone else to do it.
That said, it will be interesting to see how the firms who have frozen salaries (and hence having 1st years making the same as 2nd years) handle it. Will 1st years get a greater cut? Will they drop below the $125K of a few years ago? Or will things just reset to starting at $125K with lock step coming up from there?
OH MY WHAT A MYSTERY. I WONDER WHAT THEY'LL DISCUSS?!
I WONDER
Rug Munchin!
umm, why is there a religious war in a 2007 ATL post about Reagant law school with tons of posts from today??? It's like a bible jihad. Elie, you might wanna regulate that.
KATTEN MUCHIN ROSENPENIS
mcguirewoods did a salary freeze and then dropped incoming first years salary by 10% so that first years wouldnt be making the same as second years. i hope that katten doesnt drop salary by even more than that, because it might start the ball rolling and result in steep cuts by other firms
The only mystery at Jenner & Block today is who goes and how many. As of start of business today, tears flowed as some staff members were told remove your personal belongings from your desk and come with me.
Rumor is reductions are taking place in New York, D.C. and confirmed in Chicago.
Best of luck people
layoffs and partner departures at EAPD
12 - associates too?
yep
#12 here -- Not sure yet -- exit interviews ongoing
Body count will be know later in the day -- or Fri.
No one does machine gun killings like Chicago. NO ONE.
@5 FTW!
Whatever, paycuts are no big deal. $145k scale much better than layoffs (aka $0k scale).
12- read your email... only support staff.
And each time I roam, Chicago is
Calling me home, Chicago is
One town that won't let you down
It's my kind of town
There's such a thing as good grief. Just ask Charlie Brown.
Honestly, a little part of me always smiles inside when I hear about one of these lower tier firms going through spasms like this.
Brings back fond memories of my interviews with Katten as a 2L, when I couldn't even get a callback from them, until they found out I had offers outstanding from the V10 and suddenly they were on me like white on rice.
Any firm, like this, that doesn't even know how to do its own recruiting, deserves to suffer.
Signed,
V10 associates that is still bitter, and ok with admitting it
12/20 - stay tuned in 2-3 weeks.
It's not really a meeting - just an excuse to watch a bit of the NCAA tournament.
#23: Being happy for another person's suffering is pretty awful, even if you are bitter. The fact that recruiters didn't treat you as wonderfully you thought they should doesn't make the firing of others the equivalent of payback. Selfish much?
They are offering all those let go two pop tarts and a free happy meal!
Where is grape girl, I miss her.
Katten = extremely piss poor firm.
Haven't heard from Partner Emeritus (or whatever that douche bag's name is)..Is it because his identity was revealed?
ARRR MATEYS!! SET YER BEARINGS FOR YE COMMADORE BE SCURVY!
23 is an asshole.
Equivalent to saying you're happy that North Korean children are dying because you hate Lil' Kim Jong Il.
People with kids, mortgages, bills, etc. are going to be hurting for a long time for no fault of their own, other than working at a firm that they thought was sweet when they were a 2L.
Katten in Chicago was a bunch of slicked-hair, double-breasted-suit pimps when I was in law school. The only worse firm of note was Altheimer Grey. If Katten goes the same way as that place, no loss.
just got out. firm dissolving. going walk in front of a car now.
@32 - well said.
Kirkland had (and continues to have!!) the same name as Costco branded products (including dogfood!). The only worse firm of note that has a worse name is Salty Ballz LLP
34 - poor flame. 2pm central isnt for another 30 minutes
34 - are you serious - or is this just ATL hyperbole?
33 = racist against Italians.
In this day and age, what the f*ck is this world coming to? I can't believe this, prejudice -- prejudice against Italians!
34- not serious. 37 busted me. I will admit to an EPIC FAIL!!
oooh chicago time ! - more heads will fall....seriously anyone in bottom 20 of 1st year class should drop out.
Again, as someone who went from making $160k to $0k, I can promise that each and everyone of you would gladly drop to $145k or $125k or $115k to maintain a steady salary, health insurance, and benefits.
It's amazing how what you're willing to take adjusts when given the other alternative. In my opinion, firms that don't cut first-year salaries before firing people are just cruel.
The 2pm CT news will be bad but not as bad as some predict. Expect reductions in income partner draws and associate salaries but not headcount.
doors locked. room swept for bugs. air thick with tension. this is NOT fun.
glad i didn't take their offer
There will be staff reductions, number 43. Take my word.
good luck katten attys...
good luck katten attys...
Katten will discuss bandwidth and the NCAA tournament and how Obama's ineptitude is further highlighted by his bracket pics.
Any Katten associates live blogging this??
twitter anyone?
I can confirm attorney and staff layoffs (numbers unknown, but at least 50 combined in CHI). Salary freeze is on the table but unknown. Interested to see what is said in the meeting.
salaries were already frozen - old news 52
Live blogging a layoff meeting would be so 2009!
40+ staff
15 associates
8 paralegals
12 partners
were let go firm-wide
what department?
56 - almost every department dumb ass . .
50+ associates being let go. 3 months severance.
55 -- Firmwide or just CHI?
Departments?
55- are those amounts being let go today? or just overall?
some straight answers folks. Is it 15 associates or 50 associates? what about summers? and 09s?
Is it 50 or 15 associates being let go?
the firm is dead. long live the firm.
55 -- These nos. don't seem to rise to the level of requiring a firmwide, coordinated meeting to disclose. Either Katten is self important or we need the real nos.
From AmLawDaily:
BREAKING: Katten Announces Layoffs, Salary Cuts
Posted by Zach Lowe
Katten Muchin Rosenman announced today that they have laid off a total of 23 lawyers and 46 staffers, but what's more interesting are the steps the firm says it's taking to avoid further layoffs: namely, cutting salaries by 20 percent for associates who did not bill within 200 hours of their billable hours target (2000) in 2008.
The firm generally declined to comment beyond a statement sent to The Am Law Daily this afternoon. Associates who have their salary cut by 20 percent can get themselves back up to their regular pay levels going forward if they hit their billing targets. So, yes, the tyranny of the billable hour continues. We checked with a firm spokesman, and he explained that associates can actually earn back the 20 percent of their salary that's being cut, meaning that, if they make certain billable benchmarks, they won't end up taking a pay cut at all.
"We believe our decisions today will allow us to cut costs while saving jobs and keeping our strong practice teams intact," Vince Sergi, Katten's national managing partner, said in the statement sent.
Other cost-cutting moves at Katten: Summer associates will work eight weeks, down from ten; summers will also see their salaries cut by 20 percent; and incoming first years won't start until Feb. 1, 2010.
Of the 23 attorneys that lost their jobs today, twelve are associates, seven are nonequity partners, and four are staff attorneys and counsel.
This is the second round of layoffs for Katten. In the fall, the firm laid off 21 associates and counsel across the firm. Preliminary numbers show that Katten's gross revenue dropped about 1 percent in 2008 to $456 million while revenue per lawyer held steady.
Assume first years safe and 6 month severance?
There will only be 15 Associates (normally it is double). First-years will now start in February of '10.
3 months severance.
Any $ for the first years to hold over till Feb?
The Amlaw press release is incorrect. Many associates who made hours last year and are on pace to make hours this year had their salary cut. If an associate did not bill an average of 145 hours per month from November 2008 to January 2009 their salary was cut.
Who cares? Katten = TTT
This is stupid. Let this be a lesson to all the associates (and partners) that continue to play by the rules and don't pad their hours. Those that pad never get caught (even though, year after year, everyone knows who they are) and it is the others that get screwed.
this will spawn work hoarding and time keeping games of all kind. Time inflation, failure to delegate, you name it - it's always been there but this year will set a new high in creativity and new low in morality
this will spawn work hoarding and time keeping games of all kind. Time inflation, failure to delegate, you name it - it's always been there but this year will set a new high in creativity and new low in morality
73/74 -- .if I may add.... and new low in morale.
should do a story on the clifford chance all associate meeting yesterday at which further layoffs were not ruled out following the firm year end in april......