I always thought econ consulting for litigation was recession proof, but there's a long list of pay cuts at big law firms. I wonder when/if that filters down to expert witness fees (econ consulting for litigation)
Any insiders at consulting firms care to comment? I've heard of no layoffs so far, but also wonder about paycuts.
As a former econ consultant, firms took a hit during the great recession, some weathering it better than others. If memory serves, I heard that the AG partners even took a pay cut to help keep the firm afloat. I know other firms didn't do that and stopped/slowed hiring and let (some) people go.
Insider here at one of the big econ consulting firms. Our revenue is not really suffering. In fact, there are COVID-related lawsuits popping up here and there. Having said that, if this situation continues for six months, let's say, then what firms would be safe from that? Even government employees (especially state employees) would have to start worrying about their jobs.
Some inside info from a large firm:
1) No layoffs or salary cuts have happened yet here.
2) April/March revenues slowed due to some court deadlines being pushed out, but we're still profitable and stable.
3) As a caution, we did freeze salaries (which doesn't mean much yet since most people aren't eligible for mid-year raises anyway).
4) As a caution, we are also in a hiring freeze (again, this doesn't mean much yet since we're still honoring job offers given to fresh undergrads/PhDs and we don't do much out-of-cycle hiring anyways)
That said, who knows what the future holds.
I always thought econ consulting for litigation was recession proof, but there's a long list of pay cuts at big law firms. I wonder when/if that filters down to expert witness fees (econ consulting for litigation)
Source: https://www.law.com/americanlawyer/2020/04/28/pay-cuts-layoffs-and-more-how-law-firms-are-managing-the-pandemic/
Any insiders at consulting firms care to comment? I've heard of no layoffs so far, but also wonder about paycuts.
Expert consulting fees are just a small tax on law firms.
Similar situation here (maybe this bro/broette is at my firm).
Some inside info from a large firm:
1) No layoffs or salary cuts have happened yet here.
2) April/March revenues slowed due to some court deadlines being pushed out, but we're still profitable and stable.
3) As a caution, we did freeze salaries (which doesn't mean much yet since most people aren't eligible for mid-year raises anyway).
4) As a caution, we are also in a hiring freeze (again, this doesn't mean much yet since we're still honoring job offers given to fresh undergrads/PhDs and we don't do much out-of-cycle hiring anyways)
That said, who knows what the future holds.
any delays in start-dates?
My firm does have delays in start dates. But we are keeping all recent hires. We are delaying start dates not because we are worried about cash flow, but only because everyone is working from home, and it is not ideal for new hires and interns to begin their work in this environment.
You might get the same number of cases as before, but will likely see reduced billings as companies have less funds to "leave no stone unturned" in your analysis and are less willing to go to trial (if firms settle earlier, then that means less revenue for experts too)
Your job is safe, but some reduced profitability should be expected during a big downturn (recall Great Recession: no big litigation firms failed, but they did see reduced revenues temporarily; also the types of cases shifts so some skills are less/more in demand)
No hit in my practice. The shakeout will likely impact the weak experts. Good testifying experts are always in demand.