Law Firms Considering Layoffs During Coronavirus Outbreak
The coronavirus outbreak has led to a reduction in clients and work for major law firms. As work from home measures seem to be part of the new normal in the foreseeable future, law firms are struggling to address how to remain financially viable even as work decreases.
Some law firms are looking to make decisions at the end of April after they see what revenue has been brought into the firm. Whatever measures are pursued afterwards could either affect staff or those employed at all levels in the firm.
There has been suggestions of partners taking cuts in their seven figure salaries to help keep other staff. Additionally, there has been discussions of reducing the number of staff, such as secretaries, whose work may be most impacted as lawyers work from home. Other law firms have expressed that they do not plan on laying off staff and lawyers during the coronavirus outbreak.
"Firms are modeling worst case scenarios including potential reductions in billable hours of 50% or more over the next 3+ months," said Kent Zimmermann, a consultant to law firms with Zeughauser Group.