Newly-merged firm A&O Shearman has confirmed it is cutting around 10% of its partners and will also shutter its office in Johannesburg and its consulting arm. 

The cuts to the firm’s global partnership, which numbers around 800 currently, will be made by the end of the financial year. A&O Shearman said the move would reduce overlapping capabilities and enable it to focus on promoting and recruiting partners in growth areas.  

The firm, which was created at the start of May through the merger of New York firm Shearman & Sterling with UK Magic Circle outfit Allen & Overy, will also close its Johannesburg office by the end of the calendar year and is planning the closure of its consulting practice – Consulting by A&O Shearman.  

The firm said the moves “follow a broad strategic review which has identified those priority growth areas the firm will focus on in order to maximise the full potential of the merger, deliver an unparalleled client service, and provide the best opportunities for its people”.

The firm has no plans for a firm-wide employee redundancy programme, either for fee earners or non-fee earners, with the changes restricted to the these particular areas, according to a source familiar with the matter. 

Those affected by the job cuts will be supported by the firm during the transition and are eligible for severance, benefits and outplacement services, the source added. 

A&O Shearman global managing partner Hervé Ekué said: “These reshaping measures 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 added: “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.”

News of the Johannesburg closure comes despite the firm’s South Africa managing partner, Gerhard Rudolph, telling Law.com in May that there had been support for a continued presence in the region.

The firm has 32 lawyers in Johannesburg according to its website, including eight partners. The office was launched by Allen & Overy in 2014 after a raid on local heavyweight Bowmans and its closure will leave the merged firm with just one base on the African continent in Casablanca, Morrocco. 

A&O Shearman said it remained dedicated to supporting clients in the region and would service Africa-related work through locations including London, Paris and the Middle East as well as Casablanca, adding that it would look for new opportunities to collaborate with the South Africa-based lawyers.

Shearman’s associate firm in Italy, Studio Legale Associato Shearman & Sterling (Studio Legale) also closed in the wake of the merger, with partners migrating to rivals including Orrick, White & Case and Delfino e Associati Willkie Farr & Gallagher. 

A&O Shearman’s partnership has seen high-profile exits in recent months, including the former co-head of Allen & Overy’s global banking practice, Philip Bowden, who had been in contention to be senior partner of A&O Shearman. He defected to the London office of Proskauer Rose in July alongside leveraged finance partner Megan Lawrence. 

However, the firm has also been adding to its London ranks, hiring leveraged finance partner Filippo Crosara from Barclays in July to expand its debt finance practice and, earlier this week, recruiting private equity M&A duo Paul Dunbar and Dan Graham from Sidley Austin.