After a strong financial year in 2024, U.S. law firms are navigating both opportunities and challenges due to political and economic shifts under President Donald Trump’s administration. Despite a federal hiring freeze, law firm leaders see potential for growth, especially with geopolitical changes that can drive legal demand.
Miguel Zaldivar, CEO of Hogan Lovells, which saw a 9% revenue increase to $2.96 billion last year, explained that such shifts can create a pipeline of deal work. Despite uncertainties surrounding tariffs and economic changes, some firms, like Paul Weiss, have already seen a busy start to 2025, with revenue rising 31.6% to $2.63 billion.
Experts note that changes in the regulatory environment are becoming a key focus for clients. At firms like Baker Botts, revenue rose by 11.8%, and profit per partner increased by 17.6%, as firms adapt to rapid changes in regulations.
Law firms are also facing retirement benefits as a significant issue in recruitment. With partners earning substantial retirement payouts, some firms find that pension obligations play a crucial role in attracting and retaining talent.
Overall, while challenges remain in the form of uncertain policies, law firms remain optimistic about strong legal demand in the coming year.
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