Last month, Omnicom Media Group went through a round of layoffs across its network, which includes data and analytics division Annalect and agencies Hearts & Sciences, OMD and PHD.
The latter agency opened the year with some new business wins. In January, PHD won media AOR duties for DTC mattress brand Casper. In March, booze behemoth Diageo sent its $350 million global media account to PHD, following a review. Around a year ago, OMD eliminated regional president roles and the CMO position.
Omnicom Media Group North American CEO Scott Hagedorn and COO John Swift confirmed the series of layoffs in an internal memo sent out on April 16, which was obtained by AgencySpy.
That same day, news broke that Omnicom creative agency BBDO implemented a round of layoffs including New York CCO Greg Hahn and director of integrated production David Rolfe. On April 21, another holding company’s media network, IPG Mediabrands, implemented a series of furloughs and layoffs across its agencies. It’s unclear if Omnicom Media Group similarly utilized furloughs.
OMG did implement voluntary executive salary reductions above a certain level in line with cost-cutting measures outlined by Omnicom CEO John Wren in an internal memo, a source with knowledge of OMG operations said. Wren noted that network and practice area CEOs would incur a one-third salary reduction.
In the memo, Hagedorn and Swift acknowledged that leading the agency during this time “requires some very tough choices,” and announced that these included a series of layoffs across OMG agencies in the U.S.
Hagedorn and Swift assured recipients that these were “extremely difficult decisions,” while adding that OMG employees’ “commitment to one another and to our clients has been nothing less than inspiring.”
“It is because of your contributions that—even on a day like today—we can still have confidence that there will be brighter days ahead,” they concluded.
Here’s the memo in full:
Since the onset of the COVID-19 crisis, our leadership team has remained focused on three priorities:
- The health and safety of our employees
- Supporting our clients during these unprecedented times
- Managing the sudden, dramatic and unexpected economic impact of this crisis
Leading our business during these times requires some very tough choices. None more so than today, as some our colleagues were laid off across all OMG US agencies.
We know that this is hard news to read.
We can assure you that these were extremely difficult decisions.
As we continue to navigate these uncertain times together, your commitment to one another and to our clients has been nothing less than inspiring. It is because of your contributions that—even on a day like today—we can still have confidence that there will be brighter days ahead.
Take care, be safe and be well,
Scott and John