Allen & Overy and out” />So Allen & Overy has now joined most of its magic circle rivals in restructuring its global business. It was really just a matter of time.
Things change quickly during a downturn. Last October, A&O came close to launching a new US office in Washington, DC. And New York head Kevin O’Shea has been vocal about the firm’s appetite for growth in the US, despite the dire economic conditions.
But with two of its magic circle rivals busy streamlining and reshaping, there are those who say this is too good an opportunity to miss.
“Yes, everyone is struggling,” says one US partner. “But the current environment also provides a good opportunity for firms to trim their business and shape it how you want it to operate for coming years.”
Just as with Clifford Chance and Linklaters before it, A&O’s New York office will not be immune to the widespread partner and associate cull.
Numbers are not yet clear but the firm’s US office is already working through the restructuring process, with the job cuts set to be made within two weeks.
Whatever the reasons for the cull, Allen & Overy will not want to drag the process out any more than is necessary.
“This decision has not been taken lightly,” says one firm source. “It’s important that we get this right.”
Management by knee jerk
The actions of Allen & Overy’s management represent the very worst example of management by knee jerk reaction, driven by panic (and greed) following sight of some dire projections in support of this destructive action and utterly devoid of any coherent long term strategy to address the post crunch world. Only a couple of weeks ago they denied having any such plans.
Their approach should be contrasted with that of the superior US firms (to the partners in which loyalty and partnership bonds mean something), and with the actions of most of their UK peer group which have been restrained by comparison.
The manner in which individuals and whole groups have been targeted ( driven by internal politics and management structure) stand out and both should and will be seen by would be US and UK associates as strong reasons for avoiding this firm.
The partners in the firm should hang their heads in shame.
Anon?
Surely you’re having a laugh right. Must be one of the few remaning Linklaters lawyers.