Expert Warns of Law Firm ‘Overcapacity’ and ‘Further Timekeeper Cuts’
Posted Dec 13, 2010 12:24 pm CST
Law firms are going to protect their profits, and that means that more layoffs are likely, according to a Wells Fargo consultant.
Jeffrey Grossman, national managing director for the bank’s legal specialty group, told the Washington Post that he foresees more cuts as firms offer more alternative fees. “I still see an industry that has overcapacity and we suspect further challenges, further timekeeper cuts and possibly further staff cuts,” he said. “The bottom line is that firms are going to protect their profitability.”
The story notes that law firms are pressing to collect on legal bills as the year draws to a close and cites some examples published on Above the Law. One law firm threatened to hold the pay of lawyers if they fail to turn in their billable hour reports on time, the blog reported. At another firm, a partner said if he had his druthers, he would put the names of delinquent time keepers in a hat and draw a name for firing, according to ATL. Both stories were based on leaked memos.