The decision by A&O Shearman to close the Johannesburg office has been slammed by one of the firm’s lawyers as “incredibly distasteful”, according to a report in American Lawyer.
- The office was preparing to celebrate its 10-year anniversary and a new lease suggested there were expansion plans also, until the office cutbacks we reported this week. Senior partner Khalid Garousha (pictured) had recently visited, expressing commitment to growth in Africa, surprising and disappointing the firm’s Joburg employees.
- Garousha carries weight within A&O Shearman being co-chair of the board.
A&O Shearman’s decision to close its Johannesburg office and reduce its global partnership has sparked controversy within the legal community with plans to cut 10 percent of its partners worldwide, with significant impact on its South African operations. By the end of 2024, over 32 lawyers in Johannesburg, including eight partners, will be released.
The announcement has been met with shock and dismay from current and former employees. Some have described the move as “incredibly distasteful” and “disgraceful”.
Potential Reasons and Implications
The Johannesburg closure is set to occur by the end of 2024, which is relatively quick compared to the partner reductions that will take place through April 2025.
The firm believes it can service its African business through its Casablanca office, although there have been hints that that office may also face the axe.
The move is a total exit from the market, raising various issues and including exiting the firm’s consultancy business in South African also.
While A&O Shearman cited a post-merger audit identifying areas of overlap and overcapacity, sources suggest other factors may be at play such as the firm’s profitability with an unfavorable exchange rate affecting profits and challenges meeting global revenue targets in the South African market.
The firm maintains it will continue to service African clients through other overseas offices and explore new collaboration opportunities with South African lawyers.
Impact on Affected Lawyers
The closure affects 32 lawyers, including managing partner Gerhard Rudolph. Many of the lawyers working for A&O Shearman had left successful domestic practices to join the firm. They now face challenges in finding new positions:
Broader Context
This development occurs against the backdrop of A&O Shearman’s recent merger and subsequent restructuring.
