Economy Better, But More Partner Layoffs to Come, Survey Says
Corrected: Some two-thirds of 133 managing partners or chairmen of large law firms report that they’re feeling better about the economy and they expect it to continue to get better over the next six months.
But in a survey by Citi Private Bank Law Watch, many of those law firm managers predicted more layoffs because of increases in expenses.
The Recorder reports that one in three law firm leaders surveyed by Law Watch expect to cut nonequity partners and one in four expect to trim their equity partner ranks.
Released Tuesday, Citi Private Bank’s 10th Managing Partner Confidence Index (PDF) notes that, “It’s been a brutal six months…” yet the sense among firm managers is that “the worst of the recession may finally be over.”
And while firm leaders appear less pessimistic in this survey, they are clearly predicting more hardship.
The Law Watch report predicts more “rightsizing” to come. That includes more firms cutting associate pay, ditching summer programs and delaying start dates.
“Despite the expected reductions in headcount, cuts may not completely make up for continued weak demand, and productivity, or billable hours per lawyer, will likely stay flat or decline slightly over the next 12 months,” the report concludes.
Corrected at 12:46 to note that the survey was conducted by Citi Private Bank Law Watch.
