Nationwide Layoff Watch: Mass Lateral Hire, Mass Support-Staff Fire

Last summer, when Andrews Kurth engaged in a mass lateral hire of 55 lawyers from former IP powerhouse Kenyon & Kenyon, it brought a long-running saga to a happy conclusion. Kenyon & Kenyon had been swirling the drain for quite some time, so it was nice to see a stronger and more successful firm come to its rescue — and to the rescue of lawyers who otherwise would have found themselves unemployed.

But we noted some open questions at the time. In her story on the deal, my colleague Kathryn Rubino had this as her final line: “As of yet there’s no word on the fate of Kenyon staff members.”

As it turns out, some of those staffers got hired by Andrews Kurth Kenyon. And now, some of those staffers are getting fired. Tipsters recently shared with us the following information about staff layoffs at the firm:

1. At least 18 staffers have been laid off at Andrews Kurth Kenyon.

2. The layoffs were concentrated in the New York office and focused on legacy Kenyon staff.

3. Affected departments included business development, paralegals, IT, finance, and office management.

4. The affected individuals are being provided with severance (although specific arrangements are not known).

5. Some of the affected individuals feel that the firm made misrepresentations to them regarding job security (specifically, that there would be no layoffs in the wake of the Kenyon deal).

6. Some of the affected individuals are considering legal action against the firm.

We reached out to the firm for comment. Andrews Kurth Kenyon declined to address the specific points raised above, but managing partner Bob Jewell had this to say: “We place the highest value on the commitment and hard work that our people have dedicated to building this law firm. In order to remain competitive and financially healthy, we are constantly reviewing head count and staffing as they relate to the demand for legal services. Out of respect for our workforce, we do not comment on human resources matters.”

I’m not an employment lawyer — unlike the contributors to On The Job, Above the Law’s new employment law center — so take my opinion with a grain of salt. But based on what we currently know, I think suing the firm would be an uphill climb. Support staffers generally do not have employment contracts, making them “at will” employees; assuming no violation of a specific federal or state law (e.g., Title VII), it would be tough for them to sue based on some informal promise of continued employment. (And the staffers in question did receive continued employment, at least for a time; the mass lateral hire took place more than six months ago.)

Legalities aside, it’s unfortunate news for the laid-off staffers. But at least they enter what seems to be a decent job market, with an impressive past employer on their résumés. We wish them the best of luck as they seek new opportunities, whether in the legal profession or otherwise.

We do not enjoy covering layoffs — we prefer to write about happy news like bonuses, pay raises, and enhanced benefits — but layoff coverage is an important part of our mission here at Above the Law. 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 helping us to bring transparency to an often opaque profession.

Earlier: The Final Fate For A Troubled Law Firm

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David 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 [email protected].