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A&O Shearman to cull 10% of partners
Global law firm A&O Shearman is set to embark on post-merger strategic changes, which will – among other things – result in a predicted 10 per cent reduction in its partner numbers worldwide during this financial year.
Jerome Doraisamy
In May, the merger between Allen & Overy and Shearman & Sterling was finalised, resulting in A&O Shearman being the “first fully integrated global elite law firm”, the BigLaw player proclaimed at the time.
Now – and following what it called a broad, strategic review to identify priority growth areas and maximising the “full potential of the merger” – the BigLaw firm has detailed several consequential business changes, which were reported late last week by northern hemisphere-based publications.
As part of the post-merger integration, A&O Shearman outlined in a statement provided to Lawyers Weekly, the firm has “identified areas of overlap and overcapacity, as well as synergies, to ensure the business maximises opportunities with the highest growth potential, aligned with the firm’s strategic vision and clients’ needs”.
Among the business changes being made is a “reshaping” of the global firm’s partnership, as part of a desire to “reduce overlapping capabilities”.
This is expected to result, the firm said, in a 10 per cent reduction in global partner numbers by the end of the financial year. Moving forward, the firm will promote and recruit partners in specific practice areas that align with perceived growth opportunities, it said.
This will likely see around 80 partners leave the BigLaw player.
According to Bloomberg, communication with the impacted partners has already taken place.
Elsewhere, the firm has made the “difficult” decision to shutter its Johannesburg office, which first opened a decade ago, by the end of the calendar year. There are approximately 30 lawyers in that South Africa-based office.
Finally, the firm is planning the closure of its consulting practice: Consulting by A&O Shearman.
“The successes the team has had with clients since inception have shown the benefits of legal and consulting services working hand in hand to give clients holistic advice but, as the firm drives focus on other areas of the business, it believes this can be achieved in different ways. The firm is exploring other possible ways it can collaborate going forward,” the firm said in its statement.
A&O Shearman managing partner Hervé Ekué, who is based in Paris, said: “These reshaping measures, alongside the other strategic initiatives that we are progressively implementing, are designed to unlock the growth opportunities envisioned by our merger, setting the stage for future long-term success.
“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.”
Ekué continued: “We never take decisions like this lightly, particularly when they affect our people. We are very grateful to the partners who will be leaving the firm, as well as to our teams in Johannesburg and Consulting for their contributions over the years.
“This is a difficult but necessary step forward.
“We are confident in the opportunities that lie ahead as we continue to achieve exceptional outcomes for clients and solidify our position as a new industry leader.”
The global firm has offices Down Under in both Perth and Sydney, with an Advanced Delivery and Solutions unit based in the West Australian capital and a hub for its flexible resourcing outfit, Peerpoint, in the NSW capital. Lawyers Weekly understands that it has 29 partners and 135 non-partner fee-earner staff in Australia.
As of the time of the merger, A&O Shearman comprised nearly 4,000 lawyers, including 800 partners working across 47 offices, and a combined revenue of approximately $3.5 billion.
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly. A former lawyer, he has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. He is also the host of all five shows under The Lawyers Weekly Podcast Network, and has overseen the brand's audio medium growth from 4,000 downloads per month to over 60,000 downloads per month, making The Lawyers Weekly Show the most popular industry-specific podcast in Australia. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of Minds Count.
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