General counsel are facing a turnover crisis in their legal departments, and tighter-than-ever budget constraints threaten to push even more lawyers out the door, according to a new report.

Ninety-six percent of the 300 U.S. general counsel surveyed by the attorneys-on-demand firm Axiom and Wakefield Research said they had their legal department budgets cut going into this year, leaving them either very or extremely concerned that they won’t be able to invest in the talent they need.