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McKee Nelson lays off 17 associates, 15 staff members
November 4, 2008
Yet another law firm has trimmed its attorney ranks.
New York-based McKee Nelson laid off 17 associates and 15 staff members on Monday, citing a slowdown in structured finance work.
Those attorneys worked in the firm's corporate and finance practices. The cuts were concentrated in the mortgage-backed securities, asset-backed securitization and collateralized debt obligation areas of its capital markets practice, according to a written statement from co-founder William F. Nelson.
Nelson emphasized that the layoffs are related to the economy and are not tied to employee performance.
"All of the affected attorneys and staff are in good standing at the firm," Nelson said in the statement. "This decision was not made easily, and we are saddened that this layoff is necessary."
Nelson pointed to the September crisis in the credit market as a turning point, after which the partners could no longer bear the cost of overstaffing in the structured finance group. In a sign that certain financial legal work could remain slow for some time, McKee Nelson's layoff decision came after the firm analyzed the prospects of its structured finance over the next two years, Nelson said.
"This layoff is a necessary part of the firm's adjustment to this new reality," Nelson said in the press release.
This is not the first time that McKee Nelson has decreased its stable of attorneys amid difficult financial times. Last year, 23 associates took buyouts from the firm.
While structured finance work has taken a hit, Nelson said that McKee Nelson is "financially sound" and debt-free. He said that the firm's litigation and tax and structured products practices are doing well, and that a majority of attorneys work in those areas. He also said that the firm has relatively low real estate expenses.
McKee Nelson now joins the growing list of firms that have laid off attorneys in recent months, which includes Cadwalader, Wickersham & Taft; Bell, Boyd & Lloyd; Clifford Chance; Jenner & Block; Katten Muchin Rosenman; Sonnenschein Nath & Rosenthal and O'Melveny & Myers.
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