Nationwide Layoff Watch: K&L Gates Reduces by 36 Associates
The week is off to an ugly start in law firm layoff land. K&L Gates sent the following memo out this morning announcing a “workforce reduction” of 36 associates and 79 staff:
To: All K&L Gates Personnel
From: P.J. Kalis on Behalf of the Management CommitteeAs with other enterprises adjusting to the global economic downturn, including dozens of major law firms, we have had to adopt measures to strike a balance between the size of our workforce and the demand for certain of our services.
Today, with regret, we announce a reduction in workforce involving 36 associates and 79 staff in the United States. In addition, six lawyer posts are being considered for redundancy in the London office. These reductions (including the possible reductions in London) represent 4.9% of our associate lawyers and 4.3% of our staff. Each of the affected individuals will be personally notified today and informed of transitional arrangements.
For the affected individuals, there is little that can be said here that will not ring hollow. Although impersonal economic forces are sometimes difficult to understand, their highly personal effects are all too easily understood. Good people will be searching for jobs.
We hate to say it, but laying off just 4.9 percent of associates is almost something to brag about these days, with firms like Latham cutting as high as 10 percent in one fell swoop. Full memo, after the jump.
The announcement ends weeks of speculation as to expected layoffs at the firm. No word as to class levels, offices, or nature of the severance packages.
Here is the full memo from Peter Kalis, chairman and global managing partner at K&L Gates:
To: All K&L Gates Personnel
From: P.J. Kalis on Behalf of the Management CommitteeAs with other enterprises adjusting to the global economic downturn, including dozens of major law firms, we have had to adopt measures to strike a balance between the size of our workforce and the demand for certain of our services.
Today, with regret, we announce a reduction in workforce involving 36 associates and 79 staff in the United States. In addition, six lawyer posts are being considered for redundancy in the London office. These reductions (including the possible reductions in London) represent 4.9% of our associate lawyers and 4.3% of our staff. Each of the affected individuals will be personally notified today and informed of transitional arrangements.
For the affected individuals, there is little that can be said here that will not ring hollow. Although impersonal economic forces are sometimes difficult to understand, their highly personal effects are all too easily understood. Good people will be searching for jobs.
We thank all of the affected individuals for their service to the firm and its clients, and we wish them the best in every future endeavor.
As for the firm at large, our conservative management, global positioning, and diversification across clients, industries and practices endow the firm with a resilience that serves us well in these challenging times.
We intend to remain an industry leader in 2009 and beyond, and the decisions announced today should be seen in that light.
Thank you.
Earlier: Nationwide (Impending) Layoff Watch: K&L Gates Could Make Cuts on Friday
More Groundwork From K&L Gates
The Curious Case of K&L Gates




Comments
Comments hidden for your protection. Show them anyway!
FIRST!
And so the week begins.
what offices?
Disgraceful to turn the loss of jobs into a chance to yell "First!"
Grow up.
Disgraceful to turn the loss of jobs into a chance to yell "First!"
Grow up.
Also, FOURTH BITCHES
Aren't they aggressively expanding in this economy?
and finally, SIXTH BITCHES!
Was this one of those firms that rapidly expanded into corporate practices that don't really qualify as law? (structured finance, etc.)
The only reason this number is so low is because it does not include all of the stealth layoffs they've been conducting for months. No severance, no meaningful notice.
K&L Associate here. I might stay home from work today...will the grim partner pass over my office if I'm not there?
It could have been a lot worse.
King and Spalding massacred its NYC offices.
9, no we don't have a lot of structured finance (thankfully). Just poor performers.
Yes, Pete, everyone views the news of layoffs as an indication the firm is an "industry leader."
News flash - you are not currently an industry leader, therefore you cannot "remain" as such, especially with the way you run your firm.
This firm be remainin'
This layoff number is nothing. Latham cut almost that same number of first years in just one office!
KLobster Gates is eating itself alive. The pincers have become untenable.
On top of Latham, don't forget about the Kirkland layoffs last week. There's more coming this week in Chicago. Friday will be a bloodbath. Feel free, Kash, to quote me as an anonymous senior partner.
Notice this says associates. What does this mean for contract lawyers? Their could be more total cuts.
Seriously? Who sends an email like that and THEN talks to people??
"We are ready to give the associates their severance in the main conference room, Mr. Kalis."
Skadden Atlanta is letting go 30% of its staff and 14 attorneys.
QUINN REMAINS
QUINN REMAINS
Its time to feed CHOMPERS some severed associates.
QUINN REMAINS
QUINN REMAINS
have to imagine the Charlotte office (formerly Kennedy Covington) will be hit hard.
have to imagine the Charlotte office (formerly Kennedy Covington) will be hit hard.
What do you mean by massacred K&S NY? Do you know which practice groups?
New question: Who is representing Merck and Schering in this $41bil deal?
Maybe we can get Elie a phone with the big keys so he can make some calls and report some new information for a change?
If they're laying off 36 associates total in their 23 US offices, there has to be some proportionality to how they're laying them off. Biggest offices will lose the most.--anyone have any idea which offices are biggest? K&L doesn't exactly have a history of being generous with its associates...lets hope their severance packages aren't as meager and pathetic as their bonus structure.
K&S is quietly spiraling out of control - they reduced their summer program by a full month.
STOP with the Kirkland b.s. rumors.
I actually work here, unlike the troll who keeps posting rumors. No layoffs in NY or DC last week, and nothing is going to happen in Chicago this week.
ENOUGH.
Hey Kalis,
Perhaps reduce partner's cut by, I don't know, say 2-3%, and then you wouldn't have to see those "good people" look for jobs ... what a TTTwat firm!!!
Layofs on a Monday morning? I havent even had time to swallow my bourbon and donuts (among other things)!
First of all - 13 is a fucking dick.
Secondly, how can ATL let these firms get off easy by saying they can "brag" about only laying off 5% of their associates? That's exactly what the firm is trying to do - trying to save face and avoid the big press hit. If we think this way, we validate these cowardly firms that have used the "haircut" approach to layoffs like Bingham and Akin did last week (i.e. just a little off the top so it doesn't look so drastic...)
DON'T LET THE TERRORISTS WIN!!!
SPRING FORWARD
FALL BACK
QUINN REMAINS
31 - If you actually want real legal news, check WSJ Law Blog:
http://blogs.wsj.com/law/2009/03/09/a-law-blog-recession-rarity-a-manic-merger-monday/
Lawyering the deal for Merck: Fried Frank’s David Shine, Philip Richter, F. William Reindel and Damian Ridealgh. Lawyers from Wachtell, Lipton represented Schering-Plough.
K&S NYC has been letting 2nd and 3rd years go in bunches for the past 2 weeks.
39,
Thanks.
-31
QUINN SUCKS!!!
QUINN SUCKS!!!
QUINN SUCKS!!!
Any word on the incoming associate class?
I believe Rod Pampers is advising on the Merck deal as well.
Labor Grim Reaper here. I told you nimrods that I would be making rounds this morning at biglaw. You didn't believe me and for your insolence I will further sharpen my sickle so that the cuts will be clean and precise. This is only the beginning. By this Friday the 13th, Hollywood can write the grandaddy of all horror movies after I am finished. I am thirsty for associate blood so off I go...
So as it turns out, I am dying. That is right. I have cancer. And I have but one desire, which I was told was not possible to accomodate. Make of wish is not worth a damn. Perhaps you can help me Kash.
My one wish is to have a child. I will pay for the room and as much wine as it takes. Please help me Kash. After all, I am dying.
31, I agree. Lets hear about a mega-deal keeping associates employed and firms solvent. At least so the rest of us can reminisce about the OK old days of working on major matters, getting great experience, and racking up massive hours toward a fabulous bonus---after which we would quit in a huff and live happily ever after.
Nom Nom Nom
More GRAPES!!!
Seattle and Pittsburgh are the largest offices
I wish Judge Halverson would just eat the Dealbreaker girl so we wouldn't have to suffer through any more ads. I hate you dealbreaker.
The ship be sinking...
What's w/ the Latham obsession? Weren't they like number 5 for percentage cut? One firm (forget who...maybe Orrick?) had like double Latham.
Eli & Kash,
Aren't there ANY other stories? I feel terrible for the people who've been laid off, and I suppose I do need to know about that - but really, there is nothing else going on? Aren't attorneys/judges doing anything stupid out there?
22 - Skadden plans to close its Atlanta office and transfer all surviving attorneys to the new Scranton headquarters.
Any news out of Charlotte, Raleigh, RTP? Worried about my buddies (I'm formerly of Charlotte, laid off in November.)
Enough with Quinn already. Grow up.
54 - how does a percentage like 50% of first-year associates in a single office sound? Latham's layoff percentage doesn't include the "performance" layoffs earlier this year, while Orrick was more honest about their layoffs at the end of last year.
K&L Gates was the WORST firm I've ever worked for. They started going under BEFORE the economy went to shit. They constantly had meetings to reassure everyone that the firm was doing fine (and we're talking two years removed here), but it was a hellhole. Anyone with half a brain got out while they could.
PLEASE MODERATE.
Delete all the garbage comments and make this blog readable again.
ORRICK REMAINS
Is K&L still a law firm? I thought they were more like a due dilligence or consulting firm. Not sure this should count for Nationwide Layoff Watch.
61 = racist. Please moderate.
60 - It's only bad for losers like you. K&L is a solid firm with a promising future.
Elie,
get on the DPW corporate layoff rumors. We have multiple confirmations at xoxohth.com
63 is an ass. Pass it on.
Skadden has no Atlanta office...
60 = sour grapes. Anyone that shouts in caps is an idiot whose ordinary writing can't get a point across. Come to think of it, 60 is likely a secretary that got fired for playing minesweeper and stealing all of the the pastries from the coffee room. Sour grapes, indeed.
What about all the "stealth layoffs"?
65 = Peter Kalis
36? LOL! This is a haircut to manage and (finally) end this pesky news cycle. Now look away everyone -- the real fun is about to start.
And by "real fun" I mean business as usual: stealth layoffs are go!
K&L Associate here--looks like the incoming first years are safe. We haven't heard even a peep of a rumor about rescinding 3L offers.
why, Preston, Gates & Ellis? WHY did you do it? PGE was such a Seattle institution. K&L just ruined that. Boo mergers.
I'm guessing 65 and 69 are employed at K&L Gates. Ha! (If they haven't been called into the conference room yet. Of course, they may be singing a different tune after lunch.)
Wasn't fired. Quit. Not a secretary. Never played Minesweeper. In fact, don't know how.
Pablo Picasso was never called an asshole.
Now I know how those American Idol contestants feel. "We are getting rid of 36 of you. You'll find out if you're safe...right after the break..." Horrible.
QUINN REMAINS
because it has no conflicts and, therefore, no obstacles in taking on, doing a half-assed job with, and losing cases against investment banks, where other firms can't take them on in the first place.
DAVE GORDON!!!!
"Where should I begin, P.J.?"
K&L Associates & Staff - You're fuckin' out!
DAVE!!!! DAAAAAAAAVE!!!!
Ok, K&L insiders, spill it. Who got laid off, in which offices? First years? Senior associates? Bring on the dirt.
Friday just might be a bloodbath. There are rumors that another Chicago firm (not Kirkland) may have some big layoffs as early as Friday and confirmed reports that conference rooms are blocked off in some offices by a member of the management committee out in satellite offices.
Also, I saw over the weekend on this site that the new Vault Associate survey was do for someone on Mar. 12th, just before the 13th and possible Massacres around firms (coincidence?)
KASH or anyone, do you know if all Vault associate surveys are do by March 12th!?!?!? GET ON THIS.
84 - those of us who haven't gotten a call don't seem to know any more than people on the outside.
Anyone know what offices?
14= Worked for K&L. He/she calls Kalis "Pete." Only K&L folks (former or current) do that.
85 - why don't you just say what firm?
89-
I can't say because Uncle Sid might get me. Thus I refuse to talk about it.
My lips are sealed ... now my fingers ...
Since the K&L Gates merger with BBL, does anyone know if those that were laid off were previous BBL attorneys?
Friends and co-workers were laid off...does it really matter what their titles were? Get a life...
10 - You getting fired for being a fucktard does not a stealth layoff make.
Oceans rise.
Cities fall.
The "Conjoined Twins" poster on ATL remains.
Does anyone know how Charlotte was affected? What practice groups?
Anyone know how other seattle firms are doing in this economy? Perkins? DWT?
I want no inquiries made. I want no acts of vengeance. I want you to arrange a meeting, with the heads of the V10. This war stops now.
K&L Gates really handled the layoffs poorly. They announced that there would be cuts before actually making them, never informed the associates what offices were affected and didn't bother to let anyone know when it was finished. Our office was a mass of anxious, non-productive people who were too distracted by the impending doom to get anything done. The day has ended and there has still been no communication to the remaining staff and associates. I have never seen such poor management of something that should have been so simple.
98: I take it you are one of those who will never be happy. What would you have done differently. Compare the K&L notice to the Morgan Lewis one and you will see K&L handled this very well. In this age of instant communications (and leaks thereof) the firm has to be guarded in what it says. Take comfort in knowing that you have survived. Keep working work hard, and you will continue to survive.
The severance is a presumptive 3 months and then 1 week for each full year of service capped at 15 years.
100
Not what I heard. Maybe different based on different offices?
101, what did you hear?
For the ones who were interested, the Charlotte office was somewhat spared. a few associates will sadly be out by month's end, mostly in Real Estate along with 4 employees that departed today. A couple of which were wrongly ousted after years of dedicated service.
102
Less than three.
3 of the 4 that I heard about in Charlotte office were women. Severance was 2 months. But can stay until the end of the month.
105 sounds about right.
So sad. K&L was a good place to work. :(
Charlotte office firm culture has changed significantly since acquisition.
Hasn't Charlotte culture throughout the city changed generally since the meltdown?
Wonder how much Pete paid to put the big sign on top of One Oliver? Probably cost about 10 associates or 35 other employees. Inexcusable. The firm founders are turning in their graves.
108: I agree completely. But, as the banks become less prominent economically in Charlotte and given the likelihood that any new fancy securitization/financing work will likely be done up in NYC, I think a lot of these "branch offices" of national firms are going to fade away. Not a bad thing in my opinion. Charlotte legal market was fine before they came. It will be fine after they are gone.
96: Perkins is doing a FANTASTIC job with stealth layoffs. Last week we were down over 100 (attorneys & staff) since the beginning of the year and more are happening daily. (Firmwide - not just Seattle.)
The stealth layoffs are coming in 2 week, to one-month start-to-finish chunks...you get your discrediting, slandering, ridiculous performance "intervention" - (which you MUST sign even though they are filled with false claims) and then in 4 weeks you - are - OUT.
105: That's because women are inferior beings.
At least, that's what your post would imply. Grow up. Folks were laid off based purely on numbers. The reasons behind those numbers are irrelevant. There are a number of associates (male and female) whose numbers are not where they need to be who remain employed. What's more distasteful than folks using layoffs as an opportunity to claim "FIRST!" is the opportunity to cast layoffs as political.
112
Hold up there, skippy. K&L may hold itself out as "girl friendly" but that was not my experience. No, I wasn't fired or stealthed or whatever but K&L is not alone in mommy tracking people. And now that times are tight and they don't have the luxury of mommy tracking their female associates into of counsel positions they are letting senior women go before newer male associates. Because - why bother, right?
That may not be a comment on politics or Pete Kalis or what not - but it is observation of how things are done there.
112---The 3 women were all on the Real Estate Team (circa KC).
K&LG is very "girl-friendly", as long as a girl has the smarts to marry somebody on the management committee.
K&L, the Wal-Mart of law firms without the low prices.
98 - I totally agree. Was poorly handled!!
57---no cuts in Raleigh or RTP.
109 - "Inexcusable" is too mild. The word "obscene" comes to mind. I know it when I see it and that expensive sign at this time is obscene.
99 - K&L could have let the rest of us know when the cuts were over. Rumor has it that, our office was supposed to pass the word verbally, but they never did. No one in my department heard a word. Other departments had the same experience. We got better information from people at other firms than we did internally. That is inexcusable. You mention the risk of information leaks, but what is the danger in leaking the fact that cuts were done?
I understand that layoffs were needed and I am grateful to have been spared, but it would have been nice if I and my colleagues had at least been advised when it was over so we could stop waiting for the axe to fall. Unfortunately, I have several friends at other firms (and other businesses with higher profiles than ours) and they handled the process far better than K&L did.
120/98 - I agree.
113 and 115 -- you nailed it
98/120--Seems like that's an issue arising from individual office management. People in Boston were informed after they were done with the cuts.
115-
Not just anyone on the Mangement Committee.
The biggest dick at my law school accented his offer at K&L Gates. Even though I am sympathetic to the people who have been laid off and th 3Ls who can't start at K&LG until 2010, I cannot deny that I am filled with glee every time I realize that this obnoxious prick may not have a job when all is said and done.
The biggest dick at my law school accented his offer at K&L Gates. Even though I am sympathetic to the people who have been laid off and th 3Ls who can't start at K&LG until 2010, I cannot deny that I am filled with glee every time I realize that this obnoxious prick may not have a job when all is said and done.
anyone else have info about who was let go where? so far - charlotte had 4 let go? i've also heard of 6 in boston and 1 in pittsburgh. i also heard only 2 months severance. can anyone confirm that it was only 1 in pittsburgh?
anyone else have info about who was let go where? so far - charlotte had 4 let go? i've also heard of 6 in boston and 1 in pittsburgh. i also heard only 2 months severance. can anyone confirm that it was only 1 in pittsburgh?
We are hearing anywhere from 1 to 5 in Pittsburgh. No one seems to know for sure. Definitely 1. Probably 2. Maybe up to 5. I have also heard 8 in Dallas.
125 - if this guy's that much of a dick, he'll do fine at KLG. Hell, he'll probably be managing the Pittsburgh office in 10 years.
3 in Seattle. There was a meeting afterward to discuss.
I appreciate his stark candor acknowledging the situation. Platitudes do ring hollow at a time like this. Best to those impacted.
I appreciate his stark candor acknowledging the situation. Platitudes do ring hollow at a time like this. Best to those impacted.
132: Uncle Pete, please stop stalking ATL, and focus on drumming up more work before we end up in round 2 of layoffs, please.
134; Kalis isn't stalking ATL. It's one of his rising young minions, doing what it takes to grab a coveted "merit based bonus".
134; Kalis isn't stalking ATL. It's one of his rising young minions, doing what it takes to grab a coveted "merit based bonus".
K&L Gates associate here -- whatever you think of Kalis, his emails are always very well written and the layoff communication was no exception.
My primary complaint about the layoffs was not the email or the day it happened, it was the fact that they were supposed to happen by the end of February and didn't. Rumors got crazy during the intervening week, and the firm didn't do much to control them.
However, the cuts were so mild, relatively speaking, that I don't think many lawyers at K&L Gates have anything to complain about, at least insofar as continuing employment is concerned.
2 in newark
6 in CLT
So far, all the associate layoffs I know about at K&L were... women. And with one exception, all the staff layoffs were... women. Can someone please tell me I'm wrong?
140: You're wrong.
141: That's what we call a "conclusory statement." It would be more persuasive if you said, e.g., X number of men got laid of in Y and Z offices.
Not sure if it's possible to say that...
While there were men cut, the number in the Boston office at least was definitely disproportionately women. And I think very disproportionately people with children.
#60 - I could not agree more!!! K&L Gates should be re-named to 'Top Pricks, Little Dicks and Spinless Wimps' - - - what is that brown spot on your nose?