Client cutbacks. Stock market tumbles. Reorganization. Dot-com flops. Recession fears.
The reasons are prevalent and that could only mean one thing:
Layoffs
Big name agencies have already started reducing their workforce. But don't think the trend stops there. Plenty of smaller agencies will also feel the heat of a slower economy and clients holding onto those ad dollars.
Hiring freezes, layoffs and even eliminating positions that current employees vacate will all be powerful factors in an agency's new budget. Anywhere some red ink can be erased to improve a company's 2001 margins is at risk.
Some of those agencies cutting their staff include:
- BBDO North America
- Fallon
- GSD&M
- Lowe Lintas & Partners
- Mediacom
- Publicis & Hal Riney Inc.
- Young & Rubicam
Y&R let around 100 people go due to downsizing. Lowe Lintas & Partners eliminated 30 jobs after the company lost the Burger King account.
BBDO North America actually laid off more than 100 people at the end of 2000. The agency also dropped at least 40 people from its New York office to cut costs. In addition, further layoffs could head BBDO's way, giving as many as 225 people pink slips.
When BBDO landed Daimler-Chrysler AG's Chrysler Group account, the agency did hire approximately 200 of FCB Worldwide's employees. True North's FCB initially held the automaker's account. About 100 of FCB's Chrysler account staff remained with their future left hanging in the balance.
To further complicate the matter, Interpublic (owner of the layoff-stricken Lowe Lintas & Partners) announced its acquisition of True North (owner of FCB Worldwide) March 19. That move places Interpublic with 40 accounts in 20 countries
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