MDC Partners’ 72andSunny laid off an unspecified number of employees amounting to “less than 5 percent” of total staff in its Los Angeles office this week, several days after its relationship with Infiniti came to an end.
According to a statement from an agency spokesperson, the company is currently undergoing an internal reorganization in order to better adjust to a rapidly changing industry.
“On Wednesday, 72andSunny Los Angeles parted ways with less than 5 percent of its staff as it restructures operations,” the statement read. “We’re grateful to the team members for their contributions and dedication to 72andSunny. As a company, we will continue to deliver innovative and transformative creative ideas, and to build upon our mission to expand and diversify the creative class.”
The representative declined to elaborate on this statement.
72andSunny employs several hundred people in the L.A. office and also maintains operations in Brooklyn, N.Y., Amsterdam, Sydney and Singapore.
Multiple parties with knowledge of the change put the total number of staff affected in the mid- to low-two-digit range and told Adweek the reorganization touched all departments.
Nissan brought 72andSunny on to handle global creative work for Infiniti last year in a partnership that ultimately lasted about 11 months. In an internal memo, CEO Matt Jarvis wrote that the two parties had “agreed to part company,” and a client spokesperson said only that Infiniti “continues to use various agencies for our creative around the globe.”
Earlier reports may have overstated the agency’s role in the decision. It is unclear whether CP+B, which had been global AOR for Infiniti and continued to handle its domestic and international work, will now assume the responsibilities formerly assigned to 72andSunny.
Sources told Adweek the client is shifting toward a more regionally based approach to its creative marketing efforts.
In addition to Infiniti, 72andSunny also recently split with longtime client Carl’s Jr., which abandoned its famously sexualized ads and launched a creative review last October. The incumbent sat out the review, with the account eventually going to Havas.
Earlier this month, parent company MDC Partners saw its stock dive by more than a third after an earnings report in which CEO Scott Kauffman called financial results for the first quarter of 2018 “unacceptable.” Kauffman cited the new ASC 606 accounting standards for customer contracts, while some industry observers attributed MDC’s struggles to a “crisis” in the creative agency world.
An MDC Partners spokesperson referred back to 72andSunny for comment.