R/GA is going to lay off some 20 employees today, we’ve learned after receiving an internal memo. The cuts are set to happen around noon today, EST.
Details
The total number will represent less than 4% of the company’s staff, which includes some 563 full time employees in the US. Another 17 are freelance and 38 others operate out of London.
“Due to the economic downturn affecting companies and industries worldwide, R/GA has decided to make a tough decision and reduce our headcount,” said the agency in an e-mailed statement. “It was the financially responsible action to take at this time. Only the NY office will be impacted.”
“[O]ur offices in London and San Francisco continue to recruit.”
The agency has apparently made attempts to place cut employees in other IPG offices. We aren’t sure if any placements were made, though. “The agency is doing all it can to see that affected employees in New York are considered for other open positions at IPG sibling agencies.”
Mismanagement
A particularly interesting line in the memo stated, “[t]his is the only time that R/GA has had to take such steps.” However, that statement is contrary to what we’ve been hearing about the agency. In February we told you that the shop has been using a subversive layoff strategy whereby they bring in an employee for a review and give them 2 weeks to improve their workflow, behavior, or whatever. Then 2 weeks later, that person gets cut and soon after his or her seat is refilled.
This one-by-one means of firing and hiring keeps things quiet. And if this statement from the memo is any indication, that’s how R/GA wants to keep it. “Press Statement — Provide Only In case of Inquiry — Less Is More!”
Well, of course the aim is to keep this kind of thing on the down low.