Deutsch Los Angeles went through a staffing reduction last Friday, impacting 10% of staff.
“As a direct result of the impact that COVID-19 is having on our clients, and in turn our business, we’ve had to make hard decisions to restructure our agency,” a Deutsch spokesperson said in a statement. “We started with pay cuts at the leadership level and then had to make the challenging call to furlough and part ways with about 10% of our staff. This [restructuring] was a difficult but necessary step for us during this unprecedented time.”
It’s unclear which departments were impacted. The staffing cut followed a series of salary cuts, with senior leadership taking the largest reduction in salary, as well as a small number of employees moving to a reduced schedule, according to a source with direct knowledge of the agency’s operations. Employee healthcare benefits for those impacted by the staffing reduction were extended until July, according to this source.
On Friday, IPG CEO Michael Roth sent a memo to all IPG employees acknowledging a series of cost-cutting measures across IPG agencies, including furloughs and layoffs. Last week, fellow IPG agency MullenLowe went through a round of layoffs across its Boston, New York and Los Angeles offices.
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