Shearman & Sterling is set to pull out of Munich and Duesseldorf by the end of the year, leaving the US firm with one remaining office in Germany.

The office closures, confirmed today (23 April), will result in a number of partners relocating to Frankfurt – including Duesseldorf senior partner Georg Thoma. However, it is also expected to lead to a number of lawyers and staff leaving Shearman in Germany, with the firm still reviewing the possibility of redundancies. It is not yet clear how many positions could be affected.

The firm currently has around six partners in Duesseldorf, two of whom split their time between the city and Frankfurt, 21 associates and two counsel, while the Munich office comprises two partners, six associates and one counsel.

Shearman senior partner Creighton Condon said: "In more than 20 years we have acquired a leading position in Germany for an enviable list of clients.

"This concentration in Frankfurt will enable us to respond to a significantly altered market in Germany while providing our clients with the same level of exceptional service that they have always expected from Shearman. In addition, this will enable us to continue to invest in growth initiatives that will benefit our clients throughout Europe and around the world."

German co-managing partner Rainer Wilke added: "Our clients especially appreciate our advice in particularly challenging transactions and cases. We will continue to provide a wide range of services in Germany, and our Frankfurt office will continue to be fully integrated within our European and worldwide operations."

Shearman's other European bases are located in Brussels, London, Milan, Paris and Rome, with the firm insisting that none of these offices are under review.

Commenting on the planned office closures one partner at a US firm in Germany said: "Shearman's original plan was to increase its number of fee-earners to 1,200. But it's actually seeing numbers decreasing considerably – at the moment, I'd estimate it to be roughly 750. When you combine shrinking fee earner numbers with the number of offices the firm has, you can see how it would be hard to sustain the same model. Economically it wasn't viable."

News of the closures comes as Allen & Overy has hired Duesseldorf Shearman & Sterling corporate partner Hans Diekmann for its local office. Diekmann, who has been a partner at Shearman since 1999, will join the corporate and M&A practice. His clients include Allianz, Daimler, Deutsche Bank, E.ON and RWE. His start date is still unknown.