IPG Mediabrands went through a series of cost-cutting measures today, including furloughs and layoffs, across all of its agencies due to the impact of the coronavirus pandemic.
“As the current health crisis continues to impact our clients, we have had to make decisions to adjust to the new economic realities,” an IPG representative said in a statement. “In alignment with IPG, we are instituting a range of actions to reduce expenses, including deferring all increases, taking salary cuts, furloughs and, as a last resort and only if unavoidable, making some reductions in staff.”
Less than 5% of employees were laid off at IPG Mediabrands agencies, according to the representative.
“Our people are our greatest priority and we have done everything in our power to ensure minimal impact on staff, and to take care of those affected,” they said. “The steps we are taking are to protect our people and our business health for today so we continue to deliver for our clients and for the future.”
The announcement follows CEO Michael Roth addressing a series of cost-cutting measures that included a mention of furloughs and layoffs across IPG in an internal memo on April 10. Last week, McCann WorldGroup implemented similar measures that included layoffs, furloughs and salary reductions across its agencies. Deutsch’s Los Angeles office went through a staffing reduction that impacted 10% of its staff around the time of Roth’s message across IPG.