McCann Erickson's new business dry spell is taking a toll.
Today, the Interpublic Group shop is expected to lay off a significant number of employees at its New York headquarters. Sources described the cut as "massive" and "sizeable." Another source, however, pegged the reduction at about 4 percent. The office employs between 450 and 500 staffers.
"As part of McCann’s reinvention, the agency has had to make some very difficult decisions," a McCann representative said, in a statement. "One result is that some employees will not make the transition with us. Protecting both individuals and the health of the company is a difficult balance. The decisions made were hard. But they were based on a clear strategy for the agency."
The agency is a finalist in ExxonMobil's global review, but that's not expected to conclude until the end of the month. Since January, the shop has contended in a string of reviews—including Burger King, Stolichnaya, and Hennessy—but has failed to win. Also, its biggest win—the U.S. Army—was a defense of existing business.
Top clients in New York include MasterCard and Verizon's FiOS.