Hogan Lovells Closes Offices
One thing we all know about the law business is that it is undergoing constant change with mergers, pay hikes to secure legal talent and reducing their global footprint as Hogan Lovells have just announced.
Hogan Lovells is to close three of its international offices as part of a strategic realignment. The firm will be shutting down its operations in Warsaw, Johannesburg, and Sydney in the coming months.
The “challenging” decision is part of Hogan Lovells’ strategy to concentrate its resources and investments in key markets according to CEO Miguel Zaldivar, who emphasized that while the decision was challenging it does not reduce the firm’s move towards achieving transformational growth and driving greater success in strategic locations.
The closures will affect approximately 65 lawyers and 58 support staff across the three offices. Hogan Lovells currently maintains a presence in 33 countries, with over 2,800 lawyers globally.
Strong Financial Performance
The move comes despite the firm’s strong financial performance in 2023, where it reported record revenues and partner profits. Hogan Lovells saw a 20 percent increase in average profit per equity partner, reaching $2.74 million, and achieved $2.68 billion in global revenue.
The legal industry has witnessed similar strategic shifts recently, with other major firms also adjusting their global footprint.
A&O Shearman announced the closure of its Johannesburg office, while several firms have reduced their presence in China.
Armstrong Teasdale said in July it was ending its relationship with its UK-based affiliate and would close offices in Boston and Salt Lake City offices.
Dechert LLP announced plans in July to close offices in Beijing, Hong Kong, and Chicago.
Several major law firms have closed offices in China since last year. Perkins Coie said it would close its Beijing office and focus resources on Shenzhen after shuttering its Shanghai location earlier this year.
Hogan Lovells’ decision reflects a broader trend among international law firms to optimize their global operations and focus resources on markets deemed most critical to their long-term growth and success.
It also reflects the intense competition in specific areas of legal operation and the need for law firms to adjust their operation to optimize their strengths.
