Nationwide Layoff Watch: Banished Beyond The Gates

The cuts, which hit multiple departments and offices, are just the latest manifestation of upheaval at the firm.

woman running and try to escape from closing gates conceptLawyers at K&L Gates have to worry about dragging the firm into political controversy. Support staff at K&L Gates have a much bigger concern: job security.

Last week, according to several of our sources at the firm, “scores” of support staff were laid off at K&L Gates (the exact number is unknown). The laid-off employees included employees who had been with K&L Gates (or its legacy firms) for several decades, as well as new employees who had been at the firm just a short time (and who presumably left other good jobs to join KLG).

In terms of departments, the affected employees included nearly the entire IT training team, the entire Q/A team, Tier 2 Support, and at least one Project Manager. In terms of offices, they included Seattle, Chicago, Dallas, Melbourne, and possibly others. The affected employees did not include any upper-level management, “compounding the problem of an already too top-heavy org structure,” as one tipster told us.

Severance was provided in the amount of two weeks per year, plus benefits until the end of February and one month of career placement services (although the group providing placement services is so busy that it’s difficult to speak with anyone). This is just the latest manifestation of upheaval in the ranks of staff at K&L Gates, which last month witnessed the unexplained departure of the firm’s Chief Information Officer (CIO).

“They do not understand the importance of the positions they eliminated,” one affected individual told us. “Clients will suffer with no support to the users.”

We presented the foregoing information to the firm, which issued this response, through a spokesperson:

K&L Gates takes pride in providing professional growth opportunities for employees at all levels. The firm works to assure the right employees are performing the right jobs in order to maximize client service and efficiency. As is the case with any global professional services organization, we periodically review our staffing needs and make adjustments for the good of the firm and its clients.

Sponsored

Fair enough. In these efficiency-focused times for law firms, cuts are sometimes necessary. But that economic reality doesn’t make things any easier for the K&L Gates employees who just lost their jobs.

Do you have any additional details on what’s going on at K&L Gates? Please drop us a line. We wish all those who may be affected at the firm the best of luck while they seek new job opportunities in the legal industry and beyond.

If your firm or organization is reducing the ranks of its lawyers or staff, whether through open layoffs, stealth layoffs, or voluntary buyouts, please don’t hesitate to let us know. You can email us or text us (646-820-8477). Thank you for your help in keeping law firms honest.

UPDATE (5:45 p.m.): We don’t know how many staffers were affected, but we are probably talking about dozens on a firm-wide basis, given what this source had to say:

The K&L Gates layoffs hit Pittsburgh staff particularly hard. They aren’t finished. Tough to get official counts, but close to 30 staff. Secretaries and paralegals that I know got 12 weeks of severance.

At this point, no lawyers known to be involved in cuts. They need to cut underperforming associates/income-level partners and particularly focus on the gluttony of unnecessary managers.

Sponsored

UPDATE (2/10/2017, 10:05 a.m.): A different tipster offers this defense of the firm:

To its credit, K&L Gates used to be very humane about firing both staff and lawyers. While Latham Lathamed, KLG just kept people on while they were still slow. One associate in the 2011 class literally didn’t bill one hour for the first five months she was there (I understand she wrote a great treatise chapter). Unfortunately, it got really bloated, which is part of the reason why partners weren’t getting top dollar compared to peer firms. Recognizing the existential threat of partner departures, they’re making hard choices they should have made a long time ago. They had way too many staffers. Probably twice as many as they needed in some offices.

If this source is right, then it was only a matter of time before such a reckoning took place.

UPDATE (2/15/2017, 11:05 a.m.): Please see this update for additional information. Specifically:

1. The cuts affected an estimated 150 to 200 staffers.

2. Whether the cuts included upper-level management depends on how broadly you define “upper-level”; directors in admin, HR, and marketing departments were affected.

3. Severance arrangements varied from employee to employee.

Earlier: Biglaw Managing Partner To Entire Firm: STFU On SCOTUS


DBL square headshotDavid Lat is the founder and managing editor of Above the Law and the author of Supreme Ambitions: A Novel. He previously worked as a federal prosecutor in Newark, New Jersey; a litigation associate at Wachtell, Lipton, Rosen & Katz; and a law clerk to Judge Diarmuid F. O’Scannlain of the U.S. Court of Appeals for the Ninth Circuit. You can connect with David on Twitter (@DavidLat), LinkedIn, and Facebook, and you can reach him by email at dlat@abovethelaw.com.

Scissors Cut Money

Enter your email address to sign up for ATL's Layoff Alerts.