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.
- Preparing For The Future of WorkBusiness law partner at Foley & Lardner, Silicon Valley, writes about the challenges of post-Pandemic workplaces […] More
- Mischon de Reya Moves Into Rich London Law Listing ModeHigh profile Mischon de Reya has approved its high-value public float plans Mischcon de Reya is […] More
- The 15-Hour Workdays And Ongoing Issue of Lawyer BurnoutLawyer burnout is a major problem for law firms globally, but it’s not an inevitability More
- Why Law Firm Profitability Matters More Than EverProfitability management of law firms combined with market price signaling are ultimately the critical tools Joseph […] More
- Power Lawyers – Yvette Ostolaza Named Chair-Elect of Sidley’s Management CommitteeDallas litigator Ostolaza is to take over as the chairwoman of the 2,000-lawyer firm’s management committee […] More