A&O Shearman has cut up to 20 business services roles in its London office as the firm continues its post-merger push for smarter, tech-driven operations.

The reductions, which hit finance, marketing and IT teams, were confirmed by the firm on 7 May. No partners or fee-earning lawyers were affected.

An A&O Shearman spokesperson said the moves stem from two years of significant investment in central business teams, technology and data.

“Over the past two years, we have been investing significantly in our central business teams, as well as in technology and data, to deliver smarter and more consistent ways of working across a firm of our scale and ambition. That work has created new roles and reshaped others. In some areas, this has meant limited and localised headcount reductions. Where that has been necessary, we are working closely to support affected colleagues,” Global Legal Post reports.

The cuts make A&O Shearman the latest Magic Circle player to streamline non-legal headcount while ramping up generative AI and automation tools that are reshaping everything from legal research to back-office processes.

It follows similar moves elsewhere in the market: Baker McKenzie flagged AI-driven business services cuts earlier this year, Clifford Chance trimmed around 50 UK support roles last November, and Freshfields cited AI when it reduced paralegal numbers in Manchester.

The London action also sits against the backdrop of A&O Shearman’s ongoing post-merger optimisation. The firm – created by the 2024 combination of Allen & Overy and Shearman & Sterling – previously announced a 10% cut to its global equity partnership and has seen more than 130 partners depart since the deal went live.