Grey New York has furloughed 3.5% of staff for approximately three months, according to sources close to the agency, although the hope is to bring them back sooner. Roughly 35 people have been impacted.
Additionally, Grey has implemented hiring and salary freezes, and senior leaders have been given the option of voluntarily reducing their salaries for the time being.
Grey New York’s clients include Discover, McCormick, Applebee’s and Lindt USA.
“Grey has had a strong start to 2020 with the Discover win, among others,” a Grey spokesperson said. “We’re using all levers possible to protect jobs and be ready to ramp up in Q3 when the economic climate improves.”
Last month, Grey’s parent company WPP announced a number of cost-cutting measures in light of the spread of COVID-19. The holding company said it is freezing new hires, reviewing freelance spend and stopping “discretionary” costs, which include travel, hotels and awards show payments. WPP is also postponing planned salary increases for 2020.
Members of WPP’s executive committee, as well as its board, have committed to taking a 20% reduction in their salaries or fees for an initial period of three months.