Kenyon lays off associates and staffers in advance of Andrews Kurth acquisition
The first reports of Andrews Kurth’s acquisition of lawyers from Kenyon & Kenyon said all of the lawyers from the intellectual property boutique would make the leap to the new firm.
But that’s not the case. Some associates and staffers at Kenyon have been laid off, though Kenyon managing partner Edward Colbert would not give exact numbers, Law.com (sub. req.) reports.
Sources told Law.com that close to 40 people were being laid off, but Colbert told the publication that number was too high. “Very few” associates were laid off, he said, and the job cuts were driven by business and client needs rather than the Andrews Kurth deal.
The layoffs are “normal, course of business rightsizing” that “probably should have been done months ago,” Colbert told Law.com.
The deal between Kenyon and Andrews Kurth is being termed an acquisition of Kenyon lawyers by the larger firm rather than a merger. Andrews Kurth plans to acquire about 55 lawyers from Kenyon & Kenyon, bolstering the size of Andrews Kurth’s IP group to nearly 90 lawyers. Andrews Kurth is expected to have 429 lawyers in all after the acquisition and the arrival of new associates.
Blank Rome partner Leslie Corwin, an expert on law firm partnerships, said law firms that combine are increasingly structuring the deals as lawyer acquisitions rather than mergers. That avoids successor liability issues related to real estate leases, bank debt and obligations to former partners, he said.
Kenyon has an unfunded pension plan, three former Kenyon partners told Law.com.
