A&O Shearman post-merger strategy: 10% equity partner reduction. But investments continue
Focusing growth on “priority” areas: that’s the post-merger integration plan A&O Shearman has outlined. Three the main points of this strategy: the closure of the Johannesburg office, a 10% reduction in the global equity partnership, and shutting down the consulting practice (Consulting by A&O Shearman).
The entire international legal press is reporting this news, which cannot be ignored given the impact the creation of this global business law giant has had on the industry throughout the year.
What’s happening? The reduction in partners is part of a reorganization aimed at prioritizing growth opportunities and limiting overlaps in expertise. When the merger was initiated in May, the law firm announced that it would have 800 partners globally, meaning the cuts could affect a total of 80 professionals.
Hervé Ekué (PICTURED BELOW), managing partner of A&O Shearman, stated that the restructuring measures, along with “other strategic initiatives we are progressively implementing, are designed to unlock the growth opportunities anticipated by the merger, laying the foundation for long-term future success.” Furthermore, he added, “we are actively engaged in post-merger integration. We are already seeing the benefits of synergies and additional opportunities to assist our clients on high-profile international matters, which were the driving force behind the merger.”
A necessary decision, though certainly not an easy one, as Ekué emphasized: “We are deeply grateful to the partners who will be leaving the firm, as well as to our Johannesburg and Consulting teams for their contributions over the years. This is a difficult but necessary step forward.”
The firm also announced that those affected by the cuts will be supported during the transition and will be entitled to severance packages, benefits, and outplacement services.
That said, the firm insists that these moves “follow an extensive strategic review that identified the priority areas for growth.” The message is clear: alongside the reorganization, investments will continue, as demonstrated by the recent appointments.
