Law Firm Revenues Face Single Digit Drop After Coronavirus

Citibank – Law firm revenues will be flat, at best, this year, or may even experience a ‘lower single-digit’ drop as a result of the coronavirus pandemic, according to legal sector financial consultants Citi Private Bank.

Meanwhile, it is also anticipated that law firm layoffs are imminent as demand for some types of legal advice declines and clients take more time to pay bills.

Law firms’ corporate and litigation practices are expected to be the hardest hit with M&A deals being put on hold and litigators having to deal with court closures and delays to trials.

In an interview with Reuters, Mehrnaz Vahid, the head of Citi Private Bank’s law firm group said that, before the coronavirus crisis, law firms had expected “low single digit” increases in revenue, but now billing was expected to be “absolutely flat” or “lower single digit down” for the year.

Vahid added that firms “all expect collections to slow down, period”.

Meanwhile, some corporate lawyers have been redeployed to restructuring and bankruptcy teams as these are practice areas that could experience a dramatic increase in workflow.

However, Vahid also said that lay-offs were being considered by law firms, though it was unlikely that such plans would be put into action until six months from now when firms had the full picture of the financial impact of the coronavirus.

LawFuel News

• AI Just Passed the Bar – What Law Firms Must Know About Google’s New Search Era
  Law firm marketing has changed with new Google changes, creating a new AI factor in how lawyers should market their firms. Law firms need to structure content for AI Overviews, focusing on long-tail, multi-intent search terms, semantic markup, and topical authority. Success now requires clear, human-sounding content supported by schema, multimedia, and a recognizable brand presence across multiple platforms.
• How Phoenix Personal Injury Attorneys Negotiate with Insurance Companies
  There’s nothing quite like the moment an insurance adjuster calls with a “generous” offer—except maybe the… Read more: How Phoenix Personal Injury Attorneys Negotiate with Insurance Companies
• AI & Law Firm Marketing Sees FirmPilot Growth
  Law Firm Marketing News Thomson Reuters Ventures and Hubspot Ventures have combined to provide funding to… Read more: AI & Law Firm Marketing Sees FirmPilot Growth
• How Can Lawyers Advertise on Social Media in 2025?
  Social Media Marketing for Lawyers Milica Todorovic, digital marketing strategist If you’re a lawyer wondering how… Read more: How Can Lawyers Advertise on Social Media in 2025?
• Using Email to Build Authority in the Legal Industry – A Conversational Playbook for Modern Firms
  Aaron Marquis, Contributing writer Every few years a new social network barges into the spotlight promising… Read more: Using Email to Build Authority in the Legal Industry – A Conversational Playbook for Modern Firms