Microsoft has laid off 10,000 employees. Alphabet, Google’s parent company, has laid off 12,000 employees. PayPal has laid off 2,000, and Amazon is expected to lay off 18,000 in the coming months. The layoff list goes on. And as it does, the possibility for an upcoming recession becomes clearer and clearer.
According to KPMG’s 2022 CEO Outlook, 91% of CEOs believe a recession is imminent. Fifty percent of them are planning for layoffs. While this recession is not expected to be as devastating as the Great Recession, many believe it could last longer. And they may not be wrong. The perfect storm of a global pandemic and global tensions has culminated in a challenge economic environment. And while the hike in interest rates will likely prevent complete economic collapse, it will also cause its fair share of damage, including a possible recession of a to-be-determined scale.
As a CEO, you’ve been considering your options for months as the recession looms. Layoffs? Cutbacks? You already weathered the COVID-19 pandemic and likely still are in many ways. Will a lengthy recession be the straw that breaks the camel’s back or simply another test of your resilience?
KPMG Chief Economist Diane Swonk is hoping for the latter. As she states in the KPMG report, “I am hopeful about how resilient we proved to be in a pandemic…it was truly remarkable how rapidly we took technologies that had been around a long time and leveraged them to keep our economies going.”
Most CEOs share in this optimism. According to KPMG, “83% are confident in the resilience of their companies and industries over the next six months, 80% about the domestic economy and 72% about the global economy.”
You made it through the pandemic. You can make it through a possible recession. But you might have to make some changes. As The Conference Board CEO Steve Odland told NPR, with a possible impending recession, CEOs will “want to batten down the hatches….You really want to constrain the cost side while maximizing the revenue side.”
At Phillips Kaiser, we understand that you may need to make some tough decisions over the next months. We understand your need to keep overhead low and revenue as high as possible. This is why we’ve been providing General Counsel Services to small and mid-market companies for over 20 years. We know an in-house legal team doesn’t always make sense financially, especially during a recession. We also know that working with traditional law firms can be costly to your business, and outrageous hourly fees can make you hesitant to seek the counsel you need.
The way we structure our services allows you to work only with the expert, or experts, you need who can provide only the services you need. You don’t put our entire firm on retainer. There are no extra fees or unnecessary hours. With our unique service offerings, you can save 40-60% of what you would spend at a traditional firm, and you can do so without sacrificing quality or experience.
As founding partners, Craig and I have worked in-house for companies and law firms such as IBM, Compaq, and Bracewell and as outside legal counsel for companies like Shell, Hewlett Packard, and CITGO Petroleum. We know how to bring the most value to your company during a time like this, saving your company money and headaches in the long run.
Phillips Kaiser General Counsel Services include:
As you meet with your team to discuss how you will weather any possible upcoming recession, know that you have options when it comes to legal services – the services you will undoubtedly need as you navigate your company through tough times.
You, and the majority of CEOs across the country, are wondering what a recession may mean for your business, livelihood, and employees, but you can cross legal counsel off your list of things to worry about.