The plan could be completed next month, according to sources within the agency.
Saatchi executives are using the pending retirement of current Saatchi/N.Y. ceo Joseph Mack, who is expected to step down by year end, to restructure its upper echelon.
Saatchi & Saatchi Advertising Worldwide president Robert Kennedy had no comment on the speculation concerning Saatchi/N.Y. Mack was vacationing last week.
Saatchi sources said that upper management is considering various options to fill the impending vacancy of ceo. One scenario under discussion is to form a management group or multi-person office to run New York instead of a single ceo. However, it is possible Saatchi would settle on one person, or smaller team, to manage the business.
Meanwhile, sources said the management restructuring will lead to layoffs at the agency, although the magnitude of the downsizing could not be determined.
However, when in New York last week to present Saatchi & Saatchi Co. PLC's fiscal results for first-half 1993, ceo Charles Scott acknowledged that cost cutting would be a focus for the company systemwide. "Our margins are no where near those of our competitors. In the second half we will concentrate on that," he said. The reduction of staff costs will be a major part of that effort, Scott said.
Copyright Adweek L.P. (1993)