Hogan Lovells, a prominent global law firm, has announced its decision to close offices in Warsaw, Johannesburg, and Sydney. This strategic move, revealed on September 12, 2024, aims to concentrate the firm's resources on key markets.
Miguel Zaldivar, CEO of Hogan Lovells, stated:
"Closing these three offices was a difficult decision, but one that was needed so that we can continue our path to achieve transformational growth and drive greater success – particularly in London, New York, California, Texas, Washington, D.C., and key international markets."
The firm plans to wind down operations in these locations over the coming months. This decision will impact approximately 65 lawyers and 58 support staff across the three offices.
Hogan Lovells, formed in 2010 through a merger between U.S.-based Hogan & Hartson and UK-based Lovells, has grown to become a global legal powerhouse with over 2,800 lawyers worldwide. The firm operates in more than 40 offices across six continents, specializing in various areas of law including corporate, finance, litigation, and regulatory matters.
Despite the office closures, Hogan Lovells reported strong financial performance in February 2024. The firm achieved record revenues and partner profits for 2023, with average profit per equity partner increasing by about 20% to $2.74 million and global revenue reaching $2.68 billion.
This move by Hogan Lovells reflects a broader trend in the legal industry. Recently, A&O Shearman, formed by the merger of Allen & Overy and Shearman & Sterling in May 2024, announced the closure of its Johannesburg office and a 10% reduction in its global partnership.
The legal landscape in China has also seen significant changes. Several major law firms have closed offices in the country since 2023. U.S. firm Perkins Coie recently announced the closure of its Beijing office, following the earlier shutdown of its Shanghai location. The firm plans to focus its resources on Shenzhen.
In a related development, Loeb & Loeb, another U.S. law firm, announced on September 12, 2024, that it would be adding 17 lawyers, paralegals, and IP specialists from Perkins Coie's Beijing office. Subject to regulatory approval, Loeb & Loeb will also gain control of an IP agency from Perkins Coie.
These strategic shifts highlight the dynamic nature of the global legal market and the ongoing efforts of law firms to optimize their operations and focus on key growth areas.