People are mad, fuming, hot, frustrated with the layoffs that have been happening at MRM Worldwide, presumably because Adweek released it’s agency report card, which listed MRM’s revenues as up 32% in 2008 at a semi-whopping $330 million. So some of you have been e-mailing us saying, “why haven’t you reported this, it’s a travesty. They’re making money hand over foot and laying people off..yadda yadda.”
Well, let’s put this in perspective. Our source tells us that although the valuation is accurate, it’s not all from organic growth. For example, MRM Worldwide took over a number of operations around the globe — like MRM Starsky, which is Swedish. So even though there’s money coming in from Starsky, it’s not considered “growth”.
And furthermore, $330 million is not that much money. If you’re a 500 person one-off shop, well that’s a different story.
Here’s something you didn’t know. MRM’s clients are cutting back, hardcore, in the first quarter 2009. And as a result, the New York office was forced to lay off 12 employees…of 350. Not a huge number, but that’s the first time they’ve let people go in awhile.
An agency representative was not available for comment.