Ogilvy went through a series of furloughs and layoffs across U.S. offices this week, in addition to several other cost-cutting measures.
In a statement, an Ogilvy spokesperson confirmed that the agency had taken actions across its U.S. offices, including “implementing reduced workweeks, furloughs and limited staff reductions.”
“Over the past several weeks, we have heard repeatedly from clients how our people have helped make their brands matter when it matters most. Like many other businesses, we have felt the economic impact of this global pandemic and have had to make difficult decisions that impact our people,” the Ogilvy spokesperson said in a statement. “We’ve worked to balance our desire to protect jobs with our ability to best lead clients through this crisis and ensure the long-term success of the company.”
“Ogilvy has a strong cultural foundation that has always helped us through adversity to emerge in a stronger position to lead our clients,” the representative added.
The measures skewed more toward reduced work schedules and furloughs made in the hopes of bringing employees back when client work picks up again, according to a source with direct knowledge of the agency, who added that the moves were made across departments and offices based on a close examination of client work and scopes.
Additional measures included voluntary executive salary reductions in line with what WPP CEO Mark Read has implemented for the holding company’s executive team and follows previous actions at Ogilvy in accord with WPP guidance, including hiring freezes and a reduction in spending on freelancers and other expenditures, according to this source. Ogilvy is extending employee healthcare coverage in line with what other agencies have done and is aiding in talent placement elsewhere in the WPP network where possible, this source added.
The news follows Read confirming a series of further cost-cutting measures for WPP in its Q1 earnings report earlier this week.
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