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Friday, October 17, 2008
Law - Chicago firms laying off attorneys and staff
Ameet Sachdev of the Chicago Tribune reports:
Two Chicago law firms fired attorneys this week, and more layoffs loom as firms retrench in the face of financial tumult hitting their corporate clients.Sonnenschein Nath & Rosenthal let go of about 24 lawyers out of 680, the second round of dismissals this year, and Katten Muchin Rosenman laid off 21out of 650, the firms confirmed Thursday.
Mass layoffs are rare in the legal industry. But in the past year they have happened more frequently at firms nationwide. Outside Chicago, firms announcing cuts in recent months have included Clifford Chance, Cadwalader, Wickersham & Taft and Thacher Proffitt & Wood.
The economic downturn caused by the credit crunch have stunted financial deals that earn big fees for corporate law firms. Even the number of new business-related lawsuits has fallen for the past two years * * *
Lawyers who have not made partner are the most vulnerable to losing their jobs. Salaries for so-called associates rose rapidly in recent years but now firms don't have enough work to keep them busy.
At Katten, the layoffs affected only those below partner across multiple offices and practice areas, according to a firm statement. The firm declined to say how many lawyers in Chicago were dismissed.
At Sonnenschein, the cuts affected a mix of partners and associates and included two lawyers in Chicago. The firm also laid off about 80 support staff. In May, the firm dismissed 37 lawyers and 87 staff members.
Posted by Marcia Oddi on October 17, 2008 11:15 AM
Posted to General Law Related