UPDATE 1: See my follow-up post to the Ogilvy layoffs here
UPDATE 2: In the ultimate dose of irony, a week after these layoffs, Ogilvy launched a website to help marketers manage through the recession. I’m still not sure whether to file that one under “Irony,” “Slap in the face to employees who were let go” or “Practice what you preach.” In truth, the website is actually a pretty good idea, but so far it’s an epic fail: 3 of the 5 “booklets” (the only real content) are listed as “coming soon,” and even after I filled out a lead form to download the 2 available booklets I still haven’t received the booklets via email… 18 hours later.
In response to reductions in client spending, layoffs began yesterday at The Ogilvy Group. Some sources are estimating up to 300 North American employees will be laid off, while others are predicting a 10% reduction (150-175 employees).
Guess that recession plan designed to encourage their clients not to cut ad budgets didn’t quite pan out. Many companies have been able to cut labor costs without layoffs, but Ogilvy has seen many of its major clients slash spending and shift dollars elsewhere.
A message to advertisers: I’ve said it before and I’m sure I’ll say it ten thousand more times this year: if you want to survive this downturn then you need to maintain or increase advertising, not slash it.
The cut will affect the North American offices Ogilvy & Mather, OgilvyOne, Ogilvy Interactive and OgilvyAction.
BNET is predicting that this is just the beginning of a wave of thousands that will go through WPP’s agencies in the coming year.
If you’re a one of the unlucky, check out these top 10 layoff sites and this warm-and-fuzzy article about how being let go can be a great thing.
Sources:
10% Staff Cut at Ogilvy Group | AdWeek
Ogilvy to lay off almost 10% of U.S. staff | Crain’s New York
Ogilvy Cuts 150 Jobs; First of “Thousands” Expected at WPP | BNET
{ 1 trackback }
{ 0 comments… add one now }