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Nationwide Layoff Watch: McDermott Will & Emery Lays Off 72 People
Thursday, June 4, 2009 1:00 PM - By Elie Mystal
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.
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