Droga5 Goes Through Its Third Round of Layoffs This Year

Agency had similar staffing reductions in February and April

The layoffs affected around two dozen employees, according to one source. - Credit by Droga5
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Droga5 went through its third round of layoffs this year.

An agency representative confirmed the staffing reductions but declined to elaborate.

Around two dozen employees were affected, according to a source with direct knowledge of the matter.

The move appears to be part of the same restructuring process that resulted in earlier layoffs at the agency. In April, Droga5 parted with a number of employees in its New York office, with several sources estimating the agency parted with around 20 or more in the wake of Pizza Hut and Ancestry.com launching reviews. In February, Droga5 parted with around 5 percent of its staff, or around 40 employees.

“Droga5 has made the difficult decision to reduce its workforce in New York by approximately 5 percent in order to reshape the business in line with current business demands,” an agency spokesperson said at the time of the February layoffs. “We express our gratitude to the effected employees for their many contributions to Droga5.”

At the beginning of February, Droga5 parted ways with chief creative officer Ted Royer, shortly after placing him on leave and hiring an outside firm for an investigation. The agency promoted executive creative director Neil Heymann to Royer’s former role in May.

@ErikDOster erik.oster@adweek.com Erik Oster is an agencies reporter for Adweek.