McKee Nelson Lays Off Attorneys and Staff; Co-Founder Optimistic

[WSJ_law_blog]

The news in BigLaw has been pretty dour of late, what with firms folding on the Left Coast and countless others laying off lawyers.

McKee Nelson is the latest to suffer a setback, announcing today that it dismissed 17 corporate finance associates and 15 staff. The layoffs are a result of a steep decline in one of the firm’s biggest practices — structuring mortgage-backed and asset-backed securitizations.

“This is market driven, not the fault of these kids,” firm co-founder William Nelson told the Law Blog. (About this time last year, we noted that McKee Nelson encouraged associates and counsel to take sabbaticals, consider changing practice groups or leave the firm.)

McKee Nelson previously had re-located 24 attorneys, who had voluntarily agreed to leave. With the latest departures, the firm is down to 174 lawyers from a high of more than 200. Its profits-per-partner will be down this year by about 10 percent, Nelson says.

But things are looking up, he believes, thanks to bailout efforts by the U.S. and foreign governments. “What we are beginning to feel, for the first time in about 16 months, is a little bit of energy as things feel like they have bottomed out.”

Nelson says the firm’s other practices, including tax, litigation and white collar, are doing well, generating in excess of $1 million in revenue per lawyer. “We’ll get right back up to the top,” he says.

[forum_admin]

McKee might “get right back up to the top.” “[T]hese kids”–probably not.
Comment by hal - November 3, 2008 at 2:13 pm

Good call.
Comment by svetlana.shaknes@thomsonreuters.com - November 3, 2008 at 2:19 pm

Layoffs are tough - on the laid off and the “survivors,” too. But props to McKee for not claiming that the layoffs were based on poor performance by the folks they let go (unlike many firms).
Comment by Props - November 3, 2008 at 2:26 pm

anyone know where these hit hardest? more DC or NY?
Comment by guest - November 3, 2008 at 2:29 pm

I think McKee Nelson was one of the top 3 firms in terms of MBS and ABS issuance back in its heyday a few years ago - so assuming they were staffed up accordingly, this should come as no huge surprise. I’m not sure this should be viewed as part of a trend across all law firm practices.
Comment by securitization - November 3, 2008 at 3:07 pm

More NY. Also, the departing attorneys are getting 4 months paid severance and professional re-locating assistance. Not ideal obviously, but at least its something.
Comment by Tough day - November 3, 2008 at 3:08 pm

The Somerville News: Obama finally pays local parking tickets
Comment by Here you go Gracie - November 3, 2008 at 4:04 pm

I am sure ‘ole Willy Shakespeare would be real disheartened that lawyers are being laid off.
Comment by shakespeare - November 3, 2008 at 5:01 pm

Tough Day, you’re right. When McKee let people go when the structured finance party first started to wind down in 2007 they seemed to try to do the right thing by the associates and not just kick them out the door that week. Unfortunately for more senior associates its not really realistic to completely change practice groups when something dies. Structured finance was a lucrative boom area that ended up being the cause/expression of a huge asset bubble.
Comment by I Agree - November 3, 2008 at 5:44 pm

Aren’t these the people who found a way to legalize the investment bankers’ financing schemes that now have all of us in the tank? It is difficult to feel sorry for them and for those that put them up to it and presumably still are employed.
Comment by YIKES!! - November 3, 2008 at 6:14 pm

Wait - did you actually say “Left” Coast in the Law Blog? Sweet!
Comment by IANAL - November 4, 2008 at 9:04 am

re our conversation yesterday…
Comment by Anonymous - November 4, 2008 at 9:19 am

Well at least there is some good news related to the economy, fewer attorneys to muck up businesses
Comment by Small business - November 4, 2008 at 9:31 am

Can these guys really afford their commercials on NPR?
Comment by Proud QuinnipiaK Law Grad - November 4, 2008 at 9:40 am

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