In-House Counsel, Layoffs

Nationwide Layoff Watch: Mass In-House Layoffs After Mega-Merger

How many in-house counsel are expected to lose their jobs?

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fired firing layoff laid offWhen it comes to law firm mergers, everyone knows that layoffs are likely to follow most combinations, considering that there may be redundancies between offices. What some people may not know is that the same thing applies to in-house legal departments following corporate mergers and acquisitions. This time around, in-house counsel at beverage giant SABMiller will need to grab a drink after the company’s merger with Anheuser-Busch InBev closes next month.

How many are expected to lose their jobs? According to the Global Legal Post, up to 35 lawyers will be let go, following the departure of SABMiller general counsel John Davidson. Other big names being shown the door include, but are not limited to, company secretary and deputy GC Stephen Shapiro, deputy GC for M&A Stephen Jones, and deputy GC for regulatory and industry affairs John Fraser.

Is there more at play behind the layoffs? Perhaps AB InBev needed to free up funds for their outside legal counsel, from about eight top-tier Biglaw firms:

News of the redundancies comes as it has emerged that law firms involved in the history-making megadeal stand to reap at least $261m in legal fees for their advice on the deal. The figure represents around 13 per cent of the mammoth $2bn of professional advisory fees paid by AB InBev and SABMiller in relation to the transaction. Outside legal teams from Freshfields Bruckhaus Deringer, Sullivan & Cromwell and Cravath, Swaine & Moore led advice to AB InBev for the deal, while Clifford Chance was tasked with advising the Brussels-based company’s controlling shareholders. London-based SABMiller, on the other hand, turned to Linklaters and Hogan Lovells for its outside legal advice, with shareholders in the company advised by Simpson Thacher & Bartlett and Wachtell, Lipton, Rosen & Katz.

Corporate Counsel reports that SABMiller media spokesman George Hudson has refused to comment on the impending legal department layoffs.

We wish all of the legal professionals and affected individuals at SABMiller the best of luck while they seek new job opportunities in the legal industry and beyond.

If your firm or organization is closing its doors or reducing the ranks of its lawyers or staff, whether through open layoffs, stealth layoffs, or voluntary buyouts, please don’t hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive — we’ll never ignore you. You can email us or text us (646-820-8477). Thank you!

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SABMiller confirms mass in-house redundancies to accompany Davidson departure [Global Legal Post]
SABMiller Lawyers Face Layoffs After InBev Mega-Merger [Corporate Counsel]

Staci Zaretsky is an editor at Above the Law. Feel free to email her with any tips, questions, or comments. Follow her on Twitter or connect with her on LinkedIn.

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