McDermott Will & Emery Merges with Schulte Roth & Zabel

McDermott Will & Emery has merged with Schulte Roth & Zabel in a $2.8 billion deal aimed at developing a larger legal firm with expanded global capabilities. This transaction, initially announced in May 2025 and completed in August of the same year, integrates McDermott’s existing network and Schulte’s strong presence in New York, bringing together approximately 1,660 lawyers.

The merger reportedly included assurances to Schulte employees about job security, suggesting that layoffs would not occur before 2027 without prior approval from a panel of Schulte partners. However, nearly a year after the merger, the new entity, McDermott Will & Schulte, has let go of over a dozen associates, primarily former Schulte members. These layoffs, which affected associates across various practice groups citing low hours and insufficient work, were conducted swiftly over a span of 24 hours. Severance packages were offered to the impacted individuals, consisting of three months' severance pay and several months of continued online access to firm resources.

While the firm has not disclosed these developments to the wider staff, a spokesperson emphasized that the layoffs align with a strategic focus on matching staffing levels with shifting client demands. This approach, they stated, is necessary to remain competitive and prioritize leading practice areas, ensuring the firm can effectively support its clients amidst evolving market conditions.

The merger represents a significant consolidation within the legal services sector, reflecting a broader trend of firms seeking scale and enhanced geographical reach to meet complex client requirements. The combined firm benefits from McDermott’s international reach and Schulte’s expertise in investment management and private client services, potentially setting a new competitive bar for innovation and service quality in the market. Nevertheless, the layoffs signal challenges in integrating operations and aligning workforce capacity with client workload demands, issues common in large-scale mergers.

Looking forward, attention will likely focus on further integration milestones, such as consolidating IT systems, which reportedly faced delays and were only completed in February 2026. How effectively McDermott Will & Schulte can manage these operational aspects, alongside maintaining morale and productivity post-layoffs, will be pivotal in determining the merged firm’s continued success and client retention.