On Wednesday, Shearman & Sterling confirmed it is carrying out a fresh round of staff cuts, following other U.S. law firms that have let go of professional business roles. The New York-based company is laying off an unspecified number of individuals as part of a "global reduction" of its Business Services workforce. According to a spokesperson, the move is an opportunity to "refine and right-size" the company and is "part of a continuous review process." In an internal memo, co-executive directors Robert Brown and Geline Midouin announced that the affected employees in the Americas would be notified this week. At the same time, those in Europe, the Middle East, Africa, and the Asia-Pacific region will be informed in the coming weeks.
Above the Law, a legal blog, was the first to report the reduction, while the firm's spokesperson declined to provide specifics on the number of positions being cut.
Effective April 6, Adam Hakki became Shearman's new leader, following the company's announcement in March that it would expedite his transition to replace outgoing senior partner David Beveridge.
Shearman is among the many large law firms that have let go of employees since late last year. In February, the company laid off 12 associates and 26 business services professionals in the United States, stating that it needed to "align our capacity levels with existing client demands."
Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, a technology-focused law firm, also let go of 10% of its attorneys, paralegals, and staff in its U.S. offices last week. The move, like several others that have resulted in the dismissal of lawyers and staff, was attributed to macroeconomic and market conditions.
As global M&A activity slows, firms are experiencing decreased demand from corporate clients. Refinitiv data released last week showed that the total value of internationally announced M&A deals in Q1 2023 fell by 44% compared to the previous year, dropping to $580 billion.
Several law firms, including Cooley, Goodwin Procter, Stroock & Stroock & Lavan, Davis Wright Tremaine, Perkins Coie, and Lowenstein Sandler, have recently let go of attorneys, staff, or both.
According to new Labor Department figures, the U.S. legal services sector lost 600 jobs in March, marking the first monthly employment decline for the industry since September.
The reduction at Shearman coincides with the departure of at least 20 partners since October, particularly outside the United States. The firm recently called off merger talks with larger rival Hogan Lovells.
