Global super-firm A&O Shearman has announced that it is shedding 10% of its partners - some 80 individuals - worldwide following its creation by a transatlantic merger earlier this year. The move follows a broad strategic review which revealed overlapping capabilities, the firm said today.
A&O Shearman’s consulting practice and Johannesburg office are also to be closed. It is understood that the firm has no current plans for global cuts in the number of non fee-earners or back-office staff.
A&O Shearman was created in May this year by the merger of magic circle firm Allen & Overy and US-based Shearman & Sterling. The combined firm could boast 3,950 lawyers and 800 partners across 48 offices worldwide, with combined annual revenues of around $3.5bn (£2.9bn).
The rationalisation announced today 'will position A&O Shearman for long-term success by prioritizing industry coverage, achieving the right business and client mix, and fine-tuning the combined firm’s global footprint', the firm said.
Read more
Business changes announced today include: 'Reshaping of the partnership to prioritize growth opportunities in the areas identified in the strategic vision and to reduce overlapping capabilities. This is expected to result in around a 10% reduction in global partner numbers by the end of the financial year.'
Meanwhile the firm 'has made the difficult decision to close the Johannesburg office by the end of this calendar year.' Since the office opened in 2014, 'the opportunities, strategic focus and priorities of the combined firm have changed', the announcement said. 'The firm remains dedicated to supporting clients in the region through one of the world’s leading Africa practices, advising clients across the continent from its global network of offices, including in particular Casablanca, London, Paris and the Middle East, and will look at new opportunities for future collaboration with the South African-based lawyers.'
Another closure is the consulting practice, Consulting by A&O Shearman. The practice claims to offer expertise in six areas, including capital markets, corporate and M&A and legal innovation. According to the statement, while the practice’s success has 'shown the benefits of legal and consulting services working hand in hand to give clients holistic advice' this can be achieved in different ways. 'The firm is exploring other possible ways it can collaborate going forward.'
Hervé Ekué, managing partner, commented: 'As one would expect from a newly merged business, we are actively engaged in post-merger integration. We already see the benefit of synergies and additional opportunities to assist our clients on high-profile international matters, which underpinned the rationale for the merger. We are focused on unleashing the full potential of A&O Shearman to strengthen our value proposition and better serve our clients.'
No comments yet