EXCLUSIVE: The Firm is making changes after its founder Jeff Kwatinetz exited the company to go work with attorney Mark Geragos and concentrate on his other companies with Ice Cube.

Three lower-level employees were laid off as well as Kevin McKeon, who was Head of Film Robbie Brenner’s No. 2 exec. The company also is restructuring deals of Brenner and its Head of TV Priscilla Crowe.

There had been rumors of a bankruptcy, but we’re told that is definitely not the case and that the assets will continue to be managed until there are no more assets. They likely will not, however, be bringing in any new projects to The Firm, we hear.

Kwatinetz left The Firm and already has started at Geragos & Geragos.