Nationwide Layoff Watch: McDermott Will & Emery Lays Off 72 People
Last Friday, we reported that McDermott Will & Emery had cut the salaries of summer associates. At the time, we said:
Good luck, summers — and good luck MWE junior associates. We hope the writing isn’t on the wall.
Unfortunately, the words of the prophets were written on the subway walls and tenement halls. And we’re not talking about salary cuts.
Above the Law is now able to confirm the the firm has laid off 72 people: 25 associates and 47 staff. The firm wide memo just went out:
I want all of you to know that today we are conducting a reduction in force that will affect 25 attorneys and 47 staff members. This difficult decision results from a careful review of the current and projected needs of our clients. While we are seeing signs of recovery in some practice areas, demand for transactional-related services continues to lag. As we ride out this difficult business cycle, I want to remind you that we remain a strong Firm. Our international asset base of talent and clients and our strong balance sheet will position us well when the economy rebounds.
More details after the jump.
We know that first year associates were also included in this round of cuts. In fact, they may have been the focus of the cuts. The memo states:
We will again provide departing Class of 2008 associates the opportunity to work with community service organizations as public interest fellows. Associates participating in that program will receive a monthly stipend, enabling them to work on a full time basis with their chosen agency.
Sounds like a deferral program, just without the opportunity to come back to the firm at the end.
We asked the firm how much the stipend would be, or how long it would be available to the fired first years, but the firm has not responded to our multiple requests for comment.
This is the second round of layoffs at MWE this year. In February, the firm laid off 60 associates and 89 staff.
Will this be the last hit to the McDermott workforce?
Good luck to those that have lost or are about to lose their jobs today.
Read the full memo below.
MCDERMOTT WILL & EMERY — MEMORANDUM — LAYOFFS
From: Harvey W. Freishtat
I want all of you to know that today we are conducting a reduction in force that will affect 25 attorneys and 47 staff members. This difficult decision results from a careful review of the current and projected needs of our clients. While we are seeing signs of recovery in some practice areas, demand for transactional-related services continues to lag. As we ride out this difficult business cycle, I want to remind you that we remain a strong Firm. Our international asset base of talent and clients and our strong balance sheet will position us well when the economy rebounds.
The attorneys and staff affected are meeting with their managers starting today. We are providing comprehensive severance benefits, career counseling services and a fund to assist staff who may face economic hardship after leaving the Firm. We will again provide departing Class of 2008 associates the opportunity to work with community service organizations as public interest fellows. Associates participating in that program will receive a monthly stipend, enabling them to work on a full time basis with their chosen agency.
Beginning next week, Peter Sacripanti, Jeff Stone and I will meet with attorneys and staff around the Firm to discuss this action and report on the Firm’s operations and strategic direction for 2009 and beyond.
For immediate questions or concerns, I invite you to seek out your Office Head, your Department and/or Practice Group Head, any member of the Management Committee, your Office Manager or the administrative leader of your department.




Comments
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You think this is a problem? I once got my thumb stuck in a stripper's ass two minutes before a show in East Cleveland. Trust me, those are people you don't want to get angry. But what can I say, cocaine is a hell of a drug.
McDermott has notoriously been known to be a firm that treats its legal and admin staff like toys, and this, once again, confirms its disgrace status in the legal community.
When the economy rebounds and these firms are hiring in full force again, will these firms hire the associates they laid off (assuming they are still unemployed or want to lateral back)?
Just wondering if people will go back to their respective cubicles or if it will be a musical chairs for associates.
"Comprehensive severance benefits" - aka the Paul Bearer Neck Massage. Guaranteed to help those "who may face economic hardship after leaving."
MWE sucks. What a horrible, horrible place. What is this, McDermott's fifth round of layoffs in the past year? The leaders at McDermott are complete clowns.
"We're out of money."
And here I thought there'd be a moratorium on layoffs while the Summer Associates were in the building. What a great recruiting experience...
Echoing number 7, it seemed that the prevailing belief in the weeks leading up to the summer on campuses was that firms would try and do any and all layoffs before the SAs came in. Oh well, one more line that has been breached in this debacle....
McDermott must be in bad shape. Before they did their multiple rounds of official layoffs, they were doing stealth layoffs left and right.
McDermott Will & Emery: the worldwide leader in worst law firms.
McDermott is also the market leader in cutting summer associate salaries:
http://abovethelaw.com/2009/05/salary_cut_watch_summers_at_mc.php
What an awful firm.
Since when are support staff people? Did I miss that memo?
Can't believe someone actually recorded the MWE's managing partner's address to the firm about layoffs and already posted it on the internet.
http://www.youtube.com/watch?v=Yu_moia-oVI
I guess they didn't save enough money by cutting the coffee service.
http://abovethelaw.com/2009/02/mcdermott_desperation.php#more
Wait -- did they lay off the associates with the summers already in the office? Our summers are already here and I was counting on 10 extra weeks of job security on the assumption that no layoffs would dare happen while the summers are roaming around.
13 = Rick Roll
It was very obvious that layoffs were coming (again), but the number of people laid off is lower than anticipated. Don't be surprised to see another round of layoffs soon. McDermott continues to botch all things related to operating a law firm. At this point, has any firm laid off more employees than McDermott?
McDermoTTT Will & Emery.
I can't believe they laid off associates with the summers already around.
But maybe they WANT their summers to go elsewhere. That would explain the summer associate salary cut.
MWE is hurting.
"Most of them are probably white males anyhow."
-- SotomayOR!
Holy crap!!! I'd sure be excited about getting an offer from *them* at the end of the summer!!
You know where these laid off associates will not be able to get a job? With the federal government.
If a typo is made and fixed within minutes, it makes no sense to leave up the comments pointing it out.
Also, don't talk about the moderation policy in the comments. It's like "Fight Club": we don't talk about moderation.
(If you do, you will probably get banned, as I was.)
First David Carradine, and now PAULY SHORE is DEAD.
These things happen in threes.........
Is McDermott shedding attorneys and staff as a last ditch effort to merge with another firm?
Wow, They will surely not be able to ever attract "top talent" law students again after this move!
I think if I were a MWE SA, I'd just want to leave, at this point...
Is that guy's name Harvey Freeshit? That is a terrible name. He must suck.
The biglaw speculative bubble continues to burst. Everything is proceeding as I have foreseen...
how much severance for assocs?
If I were a MWE employee, I'd just want to leave, at this point...
I am the general counsel of a small company. I would not hire MWE because these moves make me question whether it is the next Heller or Thelen.
Mystal, may I please pleasure myself to the point of climax on your moobs? Please?
Seriously, how many rounds of layoffs have there been at McDermott since last summer? Can't the management team get it right the first, second, third, or fourth time?
When is Howrey going to start laying people off? Extremely slow and the halls are empty at 5pm - no work for anyone to do.
what is a howrey?
33 - "Can't the management team get it right the first, second, third, or fourth time?"
Apparently not.
The way to do layoffs: have one big round, and be done with it.
I seem to remember a while back that McD was creating a new class of staff attorney monkeys: http://blogs.wsj.com/law/2007/11/02/mcdermott-to-create-a-new-class-of-biglaw-attorneys/
How did this plan turn out? Have they been affected by these layoffs?
Wow. I also thought we would be able to use the summers as human shields for a couple months.
Is McDermott the next Heller or Thelen? Discuss.
Boy what do those douche bags say to the SA's at their next outing.
MWE Partner: We simply had to let go of more seasoned associates to make room for you. You understand. Now when you start in the fall you will be constantly reminded to pick up my dry cleaning and wash my hairy ass balls.
MWE SA: Boy, I can't wait to get an offer.
These laid off associates are not to be mourned, but envied. They get to join the swelling ranks of the funemployed - a new social phenomenon that seems tailor made to help loosen up the type A personalities that proliferate in the world of law. Stop sobbing and go out and start enjoying life.
http://www.sfweekly.com/2009-06-03/news/funemployment/2
Hold up everyone - somebody (23) claims that Pauly Shore is dead. Who cares about MWE's layoffs, the impact on worthless summer ASSociates or anything related to the legal industry. PAULY SHORE MAY BE DEAD! Someone get confirmation or proof of life ASAP.
34: shhh, nobody is allowed to talk about Howrey layoffs here, apparently.
I wish ATL wouldn't include number of staff laid off in the title. I like Drudge, but that's something he would do.
It's not that I don't care that they have lost their jobs, but this is a tabloid for lawyers.
There's a big difference between 72 and 25.
Wow, Pauly Shore did die. It's all over the internet, like it's bigger than David Carrodine somehow.
Pauly Shore did not die.
But the David Carradine news is true.
44: This is actually a "Legal Tabloid." There are plenty of people who are not attorneys who read this blog and care about what is going on in the legal industry and in law firms, especially when it comes to employment.
I litigated against MWE a few years ago. Rather unimpressed.
Am I the first person to notice that Elie threw a RUSH reference in there?
McDermoTTT Will & Emery.
"Am I the first person to notice that Elie threw a RUSH reference in there?"
Maybe you're the only one who cared?
BS regarding Pauly Shore: one would have heard the sounds of thousands of bottles of champagne opening in concert if it had been true.
Am I the only person who wants to spackle Mystal's tits together?
Hey, 49, it's not Rush, you moron, it's Paul Simon.
http://abovethelaw.com/2009/06/nationwide_layoff_watch_mcderm_1.php#more
Why not do a story on law firms that treat their incoming associates well? For example, compiling a list of places that are starting on time.
# 12 go fuck yourself, or can you not achieve that with you tiny dick?
I should have gone to Cadwalader. Props to them for cleaning house early on.
Due to their moronic/megalomaniac expansion schemes (kudos Greg and Seth!), Paul Hastings will follow. In fact, stealth layoffs have already begun in NY. I'm an associate in the NY office and it is absolutely DEAD here (although the 40 something SAs do liven up the scene). With all the desperation padding going on here, I feel genuinely sorry for our clients. But you didn't hear that!
--RoguePHAssociate
Howrey sucks.
What are the rumors about the entire MWE IP NY office being told to go?
Paul Hastings is still passing out monogrammed coat hangers to all female and gay associates.
57, I think 12 was being sarchastic. That is, it seems like some firms don't treat the staff as people.
16- I hate to say this, but they're probably not making any of the summers offers which is why they don't care.
What about income partner layoffs?
Soylent Staffers are made out of people! PEOPLE!
when do non-rainmaking partners get the boot? any info if this has happended already??
Does anyone actually think that McDermott is a good firm? This firm is having some serious issues.
I foresee a lot of MWE laterals trying to climb aboard my law firm. What they don't realize is that my firm is taking on water and will be laying off people very soon.
You're better off getting a job as a short order fry cook at Five Guys burger. (Hey, that's better than McD's.)
I currently have violent diarrhea and am too lazy to get up.
Close to 70 comments and no-one has made a Mickey Dees analogy....
59-Being one of them, I can confirm that PH is now conducting stealth layoffs in NY. Why isn't ATL all over this? And you are correct re: the survival padding going on in that office.
Peter Sacripanti is a fat idiot that doesn't know his ass from his elbow. He is desparate to look like he fits in at a big firm despite his Pace JD and his unimpressive intellect. There are people who have "Bronx boy makes good" stories. He ain't one.
Yeah they definitely cut first years in DC and elsewhere. People I went to school with are already off the website. Most of them did split-summers two years ago, had the choice to go elsewhere, and CHOSE MWE. Oops.
49 - Nice catch.
And Kilpatrick Stockto - 10% across the board paycut, effective July 1.
49 - Nice catch.
And Kilpatrick Stockton - 10% across the board paycut, effective July 1.
72
You don't seem to realize that EVERYONE is engaging in stealth layoffs. If you think you're special, you're not.
~Bitter ex-Latham associate
72,
Genuinely sorry to hear this. Any advice to others? Clearly the individuals who were blindsided early on were totally traumatized, just wondering if their experience helped you prepare for it in any way.
I agree with 77 -- stealth at many firms. Nothing to catch the attention of ATL. Many firms not notifying anyone, just doing slashing associates, staff, partners, the cleaning ladies, life insurance benefits. It goes on and on. Ho hum.
I agree with 77 -- stealth at many firms. Nothing to catch the attention of ATL. Many BIG Law firms are not notifying personnel, they are just slashing associates, staff, partners, the cleaning ladies, life insurance benefits. It goes on and on. Ho hum.
When will the ship officially sink? McDermott has a lot of unused office space throughout the country and abroad. The firm also still has a lot of dead weight. I wouldn't be surprised to see a large chunk of the firm's remaining solvent practices to move to other firms.
ATTENTION, ATTENTION: Bammzer is safe!
I would estimate that ATL hasn't uncovered even half the magnitude of the layoffs in Biglaw over the past year.
ATTENTION, ATTENTION: Bammzer is safe!
44: Get your head out of your ass. Attorneys and staff stand in the same unemployment line. But just to be sure, when you do go to the unemployment office, ask in a loud voice if there's a special VIP line for attorneys.
so the immolation-fest at MWE continues...as a former employee, i gotta say it feels good to see this!
85: 44 is right. staff are barely people - they're fat girls. not people. jesus.
also... they are being made obsolete by technology. f them.
Another very large round of layoffs will come later this summer. Count on it.
Staffers are only good for two things; ass pounding is the other one.
I look forward to reading the comments tonight after 5:30, when all of the remaining MWE employees get home and can post their thoughts about their miserable life at MWE.
Associates: You need to learn a simple fact: Biglaw has run out of money. That's why associates are getting fired every week.
Many firms won't be around this fall.
I don't know why this is a shock to people? The firm has absolutely no reputation to speak of, bad lawyers, and no morale.
I'm tired of shi**ing on MWE. It is horrible. The people yell.
And yes, I can't get a job elsewhere, but as soon as I do...
The people shocked at layoffs occurring while summer associates are in the building are either (a) summers themselves, or (b) dumb law students. Where do you think all the current MWE summer associates are going to go at the end of the summer? On interview after interview as a 3L and snatch up (heh heh, he said snatch) all those open 3L positions? I don't think so.
MWE doesn't care if summers are around because the summers have no other options, and, frankly, MWE probably wishes some of them don't come back.
I almost forgot -- Elie fucks sheep. There is a video...
MWE should have done what other firms obviously are--wait until the summers are gone. August/September will be a tough period.
Ahhh, the old Nailing Sheep gag. I love it.
i sure am glad to be a rising 2L.
fuuuuuuck
Google "pauly shore dead" and there are TONS of stories.
I think it's clearly true, durh... Or maybe you're still using "ask.com"
Not that anyone is going to miss his acting skills.
58 - I wldn't have agreed a year ago, but I eat my words. CWT has been having a great year...relative to other firms, at least.
"Beginning next week, Peter Sacripanti, Jeff Stone and I will meet with attorneys and staff around the Firm to discuss this action and report on the Firm's operations and strategic direction for 2009 and beyond."
So they don't have enough money to pay salaries for the affected staff and attorneys, but they have enough money to send these three _FAT_ cats on a five-star all-expense-paid first-class trip around the country; getting massages at the Four Seasons and $300 bottles of wine with every dinner.
What a great morale-booster. It's money well spent to remind me that the firm "doesn't carry any debt" and that "we're out-performing our peers." I never get tired of hearing that, and it is important to be told in person.
Don't worry, 96. Many students never make it to their third year! So there's still a chance you won't have to worry about looking for a firm job!
There's always a silver lining.
99 - It's not like they have anything better to do!
I'm glad MWE keeps their income partners in the loop. This is sad for two reasons:
1. We aren't partners; they don't trust us; or
2. They think we are so stupid to continue to exist under this "confidentiality" bs to exclude us from these discussions.
Either way its sad and a telling sign itself
97, you're joking, right? Pauly Shore is Dead is the name of one of his movies.
What happened to McDermott's proposal to hire non-partner track attorneys who would essentially do contract/staff attorney work but carry the title "associate"?
105th
The ship be sinking...
The easy life is over for young lawyers. Yes, business will come back at a later time, but most of these firms won't forget about these hard time for a long, long time. It's way past time for firms to hire few associates, pay them less, and lay them off more quickly. Welcome to the new World.
McDermott has notoriously been known to be a firm that treats its legal and admin staff like toys, and this, once again, confirms its disgrace status in the legal community.
107,
A new world in which even more of each year's top legal talent goes to the federal government instead of BigLaw.
Harvey has already done his state-of-the-firm tours. He does them after each round of layoffs. His speech is always the same....talks about how healthy the firm is and that MWE doesn't expect to do any more layoffs at this time. What a bunch of BS.
107 - what was the "easy life" exactly? I've been in biglaw for many years and seem to have missed it....
Word of advice, start sleeping with JS or PS if you want to keep your job!
As one of the severed from the culling in February, I lend you unfortunate few this advice: collect your severance, immediately apply for unemployment if applicable, and take the summer off. I've enjoyed my last four months and now have a better job after a well needed extended vacation. Good luck to all of you survivors and to MWE, well piss off. :)
What they tell us is fiction. What is real is a joke. Our situation is far worse than anyone will admit.
"The easy life is over for young lawyers. Yes, business will come back at a later time, but most of these firms won't forget about these hard time for a long, long time. It's way past time for firms to hire few associates, pay them less, and lay them off more quickly. Welcome to the new World."
Should I consider myself lucky that I'm carrying very little debt coming out of law school?
Who cares? Pauly Shore sucks ass.
@65—
McDermott has indeed laid off income partners, they just won't admit it. (This comment typed by a former McDermott income partner who was laid off within the past year. I'm not saying from which office.)
First, why does Harvey have any relevance anymore? This should be coming from Jeff and Peter. Seeing Harvey's name just makes people want to puke. He needs a swift kick in the nuts.
Second, how stupid are you? Pull off the band-aid fast, all at once. Announce the summer salary reduction, layoffs, etc. all at once. All you are doing is prolonging the bad news cycle.
Third, DO NOT TRY TO SPIN THIS, you lying bastards. If you don't start telling people ahead of time that they are on the bubble in terms of future layoffs there will be a price to pay. People deserve to know early if you think they can't cut it. That way they have time to get out on their terms, not yours. Hum, wonder if ABL would like a copy of the Xmas tree?
Me and other income partners have been laid off.
Someone in the media (or ATL?) should ask MWE what percentage of the laidoff people are women.
Pace Law School graduate is a managing partner at McDermott? That's all I need to know. This firm sucks.
Everyone knows that the firm is losing women and gay people right and left.
McDermott's leadership should rot in hell!
Secretaries were escorted out today
any news on Gibson?
Thank goodness I left when I did years ago.
I know multinational law firms are usually ever-changing societies, but, frankly, MWE takes the cake.
How could all members of Recruiting Committees in all MWE offices -- and the Recruiting Departments themselves -- have hired in so many attorneys and staff over so long a time period without either (a) asking each other if those people are really needed or (b) knowing they were qualified in the first place?
I'm told MWE -- again -- changed its yearly evaluation yearly.
When will MWE decide what it wants to be when it grows up and stop merging with (a/k/a bailing out) other firms?
Recruiting recruits because it has to keep their jobs. It is self-perpectuating. If people woke up, they would see that they don't need half the admin they have and should get rid of the ones who are notoriously mean and ill-temped (BK)
I'm a summer associate in McDermott's DC office. I feel like the firm overhired for the summer and that all the summers are walking on egg shells. I'm beginning to doubt whether me and my colleagues will get offers.
Nervous 2L SA -- McDermott
You should be nervous. You are at a firm that does not care about you or anyone else. Hopefully a partner will throw an M&M at your boobs so you will get an offer out of pity. Don't laugh. There are such partners.
128 - Never fear, you will receive an offer. This firm carries no debt, and is well-positioned with respect to our peers. You will receive an offer to return for full-time employment in 2011.
It will not be worth the paper it's printed on.
But you will receive it.
Harvey, you are a lying sack of shit.
Sack!?
I resent that (part).
I wish it really was you. If you had the guts to come onto this site at 10 p.m. so that people in all the US offices could post from home, we might finally have an interesting dialogue.
Most firms are conducting quiet layoffs. Some firms have told partners and counsel to go quiwtly. They are screwing their own partners and telling them to get out. Yes, they are. Funny thing is, they think people don't know but they do. Their employees know more than they think. They are doing this all over and, just because it isn't announced on ATL or in the Law Journal, etc. it doesn't mean it isn't happening. It is not just MWE but most big firms. Their employees are too afraid to report it.
Instead of sneaking around and doing it, they should do it openly. What client would respect these firms that lie about layoffs?
Some firms will be fine with one round, some need 5 or 6 rounds to keep their head above water. One of the comments here was to do it all and once and get it over with. That's correct.
Some firms only hit associates and staff. What aout the partners that aren't brning in the business but still get a cut of the profits? Yes, that is very fair isn't it? The associates and support staff took the hit for the partners inability to bring in clients and work to the firm. They should get off their asses and network. It is their job to bring in business...not the employees job to give them clients or billable work.
The partners that can't make the cut ought to go too!
Our summers have nothing to do.
DId anyone get cut in Houston or are they still off limits?
esCORTED??
Yes. Taken to get their stuff and shown the door. Attorneys were not.
133 - You want dialogue? I'll give you dialogue, Freishtat style!
So sit back, shut up, and we'll get the MWE dialogue rolling!
Here's our three-step plan to be a top 10 firm.
Phase 1 - Reduce salaries, increase billable hour requirements, and lay off income partners and associates.
Phase 2 - "?"
Phase 3 - Profit!
Now I'll have my assistants work that into a 50 slide Powerpoint presentation and fly all around the country "dialogue-ing" with attorneys to spread the word.
Phase 2 - Raise the RS, T and N rates by 25% and tell all clients that the N rate IS the RS rate
141 - Appreciate the comment, but in Freishtat-style dialogue, only Harvey does the talking.
And the flying around the country.
I thought I was helping you through one of your moments of stupifying, meaningless speech
Stay classy, McDermott Will.
137
144
Too late for that
anyone w/specific information about the California offices?
Harvey, dude -- you forgot the coffee. Step 2 is all about the coffee.
9--
From what I've heard, the stealth layoffs haven't stopped.
What's the situation for IP attorneys at MWE? Patent Lit?
We are Jeffter Sacratone. Behold our plan for Phase 2!
We will:
* install toilets that require client-matter numbers
* distribute coin-operated computers that turn off if the meter expires
* sublet the vast tracts of empty office space to fish processing companies
* replace all blackberries with carrier pigeons
* create a tier of attorneys BELOW staff attorney
* make the carrier pigeons coin-operated
* reallocate all income partners and associates to the new tier of attorneys
* hire one exceptionally talented paralegal
* tie client-matter numbers to individual office lights
* fire all the other paralegals
* remove all air conditioning
* make the remaining paralegal coin-operated
18--
I would say that MWE is not going to be the last firm that lets associates go while the summer associates are around--and additional associate cuts may be in the works at MWE over the course of this summer.
I do not believe firms see any need to keep up the pretense that the firms care about either their associates or summer associates. The summer associates are about to be denied offers or, if they're lucky, have their start dates deferred.
If we take a step back and think about everything that has happened over the past year or so in terms of the way that law firms have treated both their existing and incoming associates, what face is there left to save? Look back to as recently as a year and a half ago and think about the depths this business--and, I do mean business (not profession)--has sunk to.
It is a very sad day for me, personally, because I have to admit the following: I would be more surprised by simple decency and humanity than by the reprehensible conduct in which MWE has just engaged. I understand this is business, and MWE is trying to make $; but that doesn't mean that I have to approve of it .
31--
Those on this board who have some experience in this business world will likely be quite skeptical of your posting. First, not many small companies can devote sufficient resources to a general counsel--i.e. an officer whose main/sole responsibilities are mostly and/or purely legal. In addition, not many small companies can afford to pay MWE rates.
That being said, if your self description is accurate (i) you're absolutely right to be concerned but (ii) you should probably send your work to a more cost-effective firm. Let's face it, MWE cannot be at the top of the tree if they have to undergo such severe cost-cutting measures.
149 - that shipped sailed a long time ago. There is no talent left in MWE's IP ranks, except for the talent to overcharge clients, repeatedly produce privileged documents, and get sanctioned. When was the last time IP promoted a woman to CP who wasn't slated? The SV office has shrunk by half. OC and DC have more patent pros then patent lit attorneys. NY IP should be gone by July 1.
150: Well played. "Make the remaining paralegal coin-operated" is very good.
The bubble has burst and legal work for large commercial law firms has shrunk by 10-15% from the overheated days. This is a terrible mess if you have lost your job, and the jobs may not come back quickly this time, this feels worse than the early 1990s and much much worse that the dot.com bubble. I believe we are entering the second year of a bad three to five year cycle. Recent history has taught the managers at MWE and other major firms to preserve the PPP and don't let it fall farther than their peer firms, because if you let a certain number of big rainmakers get away for more money elsewhere, you can enter a death spiral that will crush everyone. So I think you are seeing a somewhat desperate attempt at MWE and similar firms to keep the PPP from falling more than $200K or so from last year, but PPP will certainly fall at 80% of the large law firms. There will be at least 10 more firms out of the AmLaw 200 to dissolve before the end of 2010, and several may keep going in badly damaged form, but the rest will make it through and prosper. That is the reality that the law firm managers are facing and I don't think it is all greed by the top partners although that certainly plays a part. MWE has done what it needs to do for stability and good luck to all those who have been cut.
Meeting with JS in Chicago yesterday. Long on generalizations, very short on specifics.
Haven't most of the rainmakers left in premier practices like Health and IP? What's the plan now?
Number 39 (and everyone else):
MWE is a strong firm with no debt. In tough times, the partners kick in extra $. The firm is solid. Most other firms have tons of debt. It does not matter whether you are at IBM, GE, or Target, when times slow down, businesses need to cut expenses. The legal market shrunk in the 70s, it happened in early 90s, and yes, it is happening now. MWE will be around to compete with the best for a long time.
I was so mislead by the attorneys that interviewed me during OCI and at the firm. Other firms I interviewed with last summer were up front about the uncertainty of the market. Among other things, MWE's attorneys (including mgmt), specifically told me that they had a lot of work in my practice area (big fat lie) and that the firm's "lack of debt" and "lean staffing" was enough to withstand a market downturn without layoffs. I have come to find out from associates that while I was being fed this BS, the firm had already started its stealth layoffs.
Since we have no SA work, I have been spending my time researching my damages for detrimental reliance. Plus, in my 2 weeks I have already experienced enough to make out a claim for sexual harassment. If I don’t get an offer, I will be fully prepared take these a-holes to court.
- SA from top 5 LS looking for new firm.
158- Seriously, MWE may not go the way of Heller or Thelen but it will drop sharply out of the ranks of premier firms.
Unless they pay $$$, there is no way it will ever attract top lateral talent again.
159 - If it is so bad, why do you want an offer. You must like the sexual harrassment.
MWE is not folding any time soon. that doesn't do anything for the folks getting laid off or who may not get offers, or morale, which sucks, but it's not going anywhere. it is filled with astute business types who run it as a business. they print $ in the up times and conserve in the down times. probably the best firm business wise.
My personal opinion, from first-hand observation of one firm that went under and another that is on the way, is that when law firms started being run as if they were businesses, in business to print $, that's when the model began to fail. I guess we'll see!
McDermott is far from going under. It has been around for a long time and will continue to be around for many more years. My guess is that not all practices will survive. IP, for example, has only been around since 1996 and everyone who started that practice has left. Not a good sign.
I think McDermott will fold by the end of 2010. Rainmakers will leave, layoffs will continue, more costly office space will sit unused, the firm's cash flow will continue to decrease and the firm will unsuccessfully seek to merge with another firm.
159 - Congratulations, you've given MWE partners -- who do read this blog, by the way -- more than enough information to identify you.
166, why is that? Only got one t5 to summer at the firm this year? Too many Pace grads filling up all the spots apparently.
-122
Not quite
They're letting go more minorities and older employees.
Just ask someone from the inside Chicago office for the ratio.
Why is the firm being so secretive about income partner layoffs? No one is talking about them but they are happening.
in SV?
burchfield sees the writing on the wall -- i hear he's gunning for a position with as a senior attorney for the ACLU.
More bad news; what a shocker. MWTTT.
What else can possibly be wrong? Please educate me.
Bitch, bitch bitch. Is that all you narrow-minded, self-absorbed pricks can do on this blog? You all act as if your entitled to have and keep the jobs you had at McDermott. The truth is hard to swallow, but you're not that special. EVERYONE is fungible. And, bottom line, you'll all find other employment elsewhere making 6-figure salaries. Ever think about the thousands of people out there making $20,000/year who have lost there jobs and still have a family to support. So, get off your high horses, and appreciate the things that you've got, and not bitch and cry about what you don't have.
It appears that the bitterness about MWE is not because people are being laid off (that is happening everywhere) but that MWE's management is formed of a bunch of greedy liars and the process the management employed to reduce its force involved no communication, firing good attorneys only to save the ass kissers, and creating a second class citizenship for women and minorities.
The NY office will be obsolete by the end of 2009...mark my words. The only people left are the ass-kissers and ass-holes who pretend like they have work (when everyone knows there is none) and bill their time to a client when surfing the internet and looking for other jobs. It has gotten really ugly.
It might be time for everyone to act like adults and realize that no one owes you anything. You were hired because of your talents, and things have changed in the world. If you want full transparency with all those you work with, go to work for a five person tech start up with no capital and hold hands with your boss everyday. Otherwise, the best advice is that "things change," and you are hearing about it as it unfolds. MWE is a solid firm, with a long history of financially conservative chairmen and management committees. It will continue to be ranked in the top law firms in the country for a long time. Many comments on this blog are full of speculation and slander. None of that is productive, and most is a waste of time to read.
Slander?
174 & 177 -- same person, and an annoying one at that.
McDermott sucks.
For the people who have posted personal comments with initials, do you think you would have done so if you had to copy your parents and grandparents on your comments? Sometimes we get out of alignment with how we were raised.
My parents and grandparents taught me to tell the truth
It appears that the input provided here has gotten some attention. Try to channel the anger in a productive manner by taking steps to make things better.
McDermoTTTT.
179,
174 here. Sorry, 174 and 177 are not the same person. While I'm open and respectful enough to listen to your opinion that "McDermott sucks," and accept it as your opinion, I hope you'd do the same for those who have opinions that are not the same as yours.
Whoever denied it supplied it.
At MWE there's an odd disconnect. The people driving seem to think that "financially conservative" equals "treat people like crap. Even in these changing times, firms that aren't MWE make an effort to sugarcoat it., to be cheap as hell and still make employees think they're valued, just a little. Spend $100 on coffee for crying out loud! But management is tone deaf to this. And it's all BS anyway, when you consider the new middle management class being brought in from Howrey and, as has been pointed out above, on the Harvey/Jeffter Roadshow, blowing the coffee budget of every office in the firm for a year, just so we can be lied to in person. Yes, we're all fungible. Thanks so much for being so blatant about it. Excuse me while I go work someplace where I'm EQUALLY fungible, but don't get that fact shoved in my face on a daily basis.
185, that's such adult behavior. You going to the park with 179 to play, after you eat your bagged lunch?
And you spent how many thousands of dollars for law school (big assumption here that you're a lawyer) to come up with "Whoever denied it supplied it" ???? You should try to get your money back.
No. MWE does not put any investment in human capital. Look at partner promotions. Look at opportunities. Look at the blatant lies from every single member of the mgmt committee. Why do we pay them? They are a fraudulent tax on our earnings and they can't do anything right without flying around the country and bitching about it.
I've worked in many places, and believe me MWE is probably in the middle when it comes to budgets and treating their people well. Have you ever worked for an insurance company?
yes. and at least there promotions and comp decisions are done fairly. have you EVEN check out the track record in IP? I guess it doesn't matter anyways, we used to have over 220 people, we are now at 90 and losing more.
we will be as impressive as the health group very soon- WITH HIGHER PAID LOSERS!!!
right on dude, or dudette (since you are a woman who has probably been passed over)
177
I tried more times then I can count to express to my supervising partner and others the views that I have described here. He either was too busy with all his firm and client responsibilities or used poor listening skills. I concluded that he really was unable to care about what I was trying to tell him. If it wasn't something that was important to him or fit his view of the world, then my concerns were quickly dismissed. If it was negative, he yelled. I eventually reached a point where I stopped trying and focused on just doing my job instead of enjoying my career.
Corn Julio say: Cool, huh huh, huh huh huh 160 thinks MWE is premier, huh, huh, huh.....
I guess premier = unsophisticated commodity work for unsophisticated companies/counsel or the sophisticated who want scut work done by a firm that isn't terrible, but can offer some seats to a game...
hey 159! have you been harrassed by a committee member?
190: Pitch materials (received last week) still say over 220 IP attorneys - another lie?
Oh, that is misleading. They need to fix that, especially after the NY attorneys leave.
All the management cares is PPP, for their own benefits and for retaining power rain makers. As to associates and income partners, well, they are disposible commodity.
I actually don't fault the CP's for looking out for themselves. That is their right as owners. What I do strongly dislike is the lack of fairness. If you think I suck, please tell me.
190: Regarding your post:
"I guess it doesn't matter anyways, we used to have over 220 people, we are now at 90 and losing more.
we will be as impressive as the health group very soon- WITH HIGHER PAID LOSERS!!!"
What is happening with Health? Outside of lacking a credible presence in NYC for a year or more, I thought the Health group was doing well.
McDermott Chicago sucks gigantic donkey balls!
Watch out. Someone will soon be telling you that MWE is a super firm; that they have sucked another donkey's balls, and can tell you that MWE's are heads and tails above most out there. .... Sorry 200, I think you are way off the mark.
McDermott is absolutely the best firm in the world, ever!
174, 177, 201, et al: Certainly the reflexive bashing of any firm isn't productive, and the level of discourse could be higher in the ATL comments, but there are enough articulate and specific concerns in this thread to suggest a widespread perception that there are real problems in the firm. We, your MWE associates, recognize that there are no certainties in this line of work, and that nobody is truly irreplaceable. However, the people running the firm are not inspiring confidence, and the failure to communicate candidly and effectively with the associates (and the outside world) only fuels the suspicion and pessimism. If our concerns are unfounded, tell us why. If there is a plan, explain it.
Skadden has officially deferred its class of 2010 associates to 2011.
ATL re S&C:
Even people who were not stealth layoff victims write us at Above the Law, pissed about their firm's shady treatment of their friends and colleagues. And when stealth layoffs happen at top firms, we get top emails. We initially reported that 15 - 20 people were quietly let go from Sullivan & Cromwell, but that number keeps growing:
Now about the layoffs. 30+ is much more close to the truth than 15-20 previously reported. As you have mentioned, this 15-20 associates were the ones told in February who now have already left. But layoffs are ongoing. I can personally [list names]. I've heard from a senior associate (who was told by friendly partner) that the plan is to lay off 10% of associates, in NY that would be about 45-50. I am ... pissed about ... how they handle it....They would rather destroy your reputation and self-esteem than concede to economic layoffs.
ATL also reported stealth layoffs started happening at DavisPW in December.
McDERMOTT needs compassionate women running the show.
There would be no management problems, no layoffs, free coffee, and a raise for first years to 190k if McDermott had elected co-chairwomen to lead the way. My vote is for the Fujimoto/Warner ticket!
Oh boy, what a ticket!
disney radio is the best on sunday mornings
203, 201 is a joke. It looks like someone is reviewing old posts about the firm and adding an alternative point of view. See comment 41 in the string at
http://abovethelaw.com/2009/04/morning_docket_040709.php?show=comments#comments
As someone who was laid off in SV, I can tell you that its worse here than all the bashing of the DC office.
211: yeah, but at least SV has hot females on staff. the women in DC are simply ugly.
MWE DC, don't you think the lady in the Comcast ad looks like AV?
210: 203 here. I stand corrected re 201. There are so many nascent memes and vanishingly subtle allusions on ATL, it's hard to keep track.
staff in sv? we have been downsized, we have a building which we have to share with other tenants, and our IP group has shrunk by 1/2 in the last ten months. great.
staff in sv? we have been downsized, we have a building which we have to share with other tenants, and our IP group nationwide has shrunk by 1/2 in the last ten months. great.
staff in sv? we have been downsized, we have a building which we have to share with other tenants, and our IP group nationwide has shrunk by 1/2 in the last ten months. great.
212 here again.
am i the only one to think that the DC women are ugly? most of the associates have a lot of cushion on their insanely large asses.
at least the women wor
212 here again.
am i the only one who thinks the DC women are ugly? most of the associates have a lot of cushion on their insanely large asses, and a few of the female income partners have goatees.
Dude. Look at the women in DC. They have to be hot otherwise how can they sleep their way to the top.
212, why do you care what the women are like in DC if you are in SV? It has no impact on you.
Also, you better make sure you are one hot dude if you are calling out women on their looks.
Dear 212:
I have looked at every guy on the firm's website that works in the SV office. There is not one guy that has the looks to allow him to comment on the women of DC.
Perhaps you were laid off and aren't on the site? If so, that also means you have no business commenting as your inability to keep a job puts you out the league of women in DC that still have theirs.
What offices lost attorneys in the latest massacre? what practice areas?
What about staff (were they librarians, paralegals, secretaries, IT)?
Expect more layoffs after the upcoming evaluations. Pack and be ready to be escorted out the door.
224, you like power rangers?
The affairs seem to be a DC issue. In my group, I don't know a CP that hasn't had an affair even though the CP may be very lovey with their wives at the Holiday parties (who was probably a former MWE associate). Does anyone know of a single woman who has actually benefitted from having an affair with a CP? It seems like the firm just fires the female participant at the end of the affair.
I'm in Trial. I 've been waiting to get promoted for years. Will it ever happen? I'm just another IP wanting to be CP.
Will the new leaders help?
227, get a clue. It will never happen.
1-228:
Revenues are off because of the economy. Expenses have been cut as a result. There is still no debt. The economy will turn around, and MWE will be as strong as ever. We are all lucky to have a job. If you don't like it, quit and go work on a fishing boat in Alaska, go work in a coal mine in West Virginia, or go work on a construction crew in Canada in the winter; but PLEASE, stop complaining and acting like the world owes you something.
OK, three left IP in NYC, including the practice group leader. What is the scoop?
229 - The world doesn't owe us something, MWE owes us something. You conflate the two.
If your whole world is MWE, man, I pity you. This place sucks.
230 - rumor is pushed out, no business
TPM no longer had any use for them so he didn't help with any of te conflicts that would arise. Same story - IP has no management after the Lupo/Lever team. Ahh the good old days . . . don't know how long MWE IP will survive. Feel sorry for any of the clients that are still left.