McCann Worldgroup has implemented a series of layoffs, furloughs and salary cuts across its agencies in response to the business impact of the coronavirus pandemic.
“The current health crisis is constantly evolving, and creating significant economic impact. As we navigate through this, we are taking a series of steps to ensure we can appropriately support our clients as well as the long-term vitality of the agency,” McCann Worldgroup chairman and CEO Harris Diamond said in a statement. “A variety of actions across our agencies are being implemented that include salary cuts, freezes on hiring and temporary labor, major cuts on non-essential spending, and furloughs in markets where that option is available. Unfortunately, reductions in staffing levels are also taking place in certain areas of the business.”
“These are difficult decisions made in difficult times,” Diamond added. “Our goal is to service our clients while protecting as many jobs as we can, and we will of course provide as much support as possible.”
Other measures taken across certain McCann WorldGroup agencies include reduced work schedules, a source with knowledge of the group’s operations told AgencySpy.
McCann Worldgroup confirmed that 215 McCann was among the agencies hit by a round of layoffs. Sources variously described the number impacted as 10%, or a total number of employees in the single digits. Widespread furloughs and salary cuts also impacted the agency, as with other McCann Worldgroup agencies. The office’s clients include Columbia Sportswear, LinkedIn and Xbox.
The measures follow IPG CEO Michael Roth addressing layoffs, furloughs and other cost-cutting measures the holding company would take across many of its agencies in a memo sent to employees last week.
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