The survey reports that 38% of legal departments are decreasing the amount of work sent to outside firms.
The survey is conducted by Ipsos Reid for the law firm Davies Ward Phillips & Vineberg and the Canadian Corporate Counsel Association.
More than one-third have implemented a hiring freeze, and 22% have cut their legal department budgets.
In-house lawyers report they still like their jobs, with 77% saying they would recommend becoming an in-house lawyer, and 80% recommending that a lawyer first work at a law firm before going corporate.