TBA Law Blog


Posted by: Stacey Shrader Joslin on Jan 11, 2023

Falling demand, declining profits and rising expenses are creating a challenging climate for major law firms in 2023, a new industry report warns. Some law firms already have let attorneys go after bulking up in 2021, and more layoffs are likely as clients tighten their belts and move work to lower-priced firms, the report from Thomson Reuters suggests. The “2023 Report on the State of the Legal Market” found that after growing 3.7% in 2021, client demand dropped 1.2% in the first nine months of 2022. That contraction was fueled largely by declines in transactional work and general uncertainty about the direction of the economy. The outlook for mid-sized firms may be more positive, the report finds. Read the full report.