IPG Mediabrands plans to lay off 103 people on January 2, according to a WARNING notice registered in the State of California.
The Worker Adjustment and Retraining Notification Act requires businesses with 100 or more employees to provide notifications of facility closures or mass layoffs 60 calendar days in advance. IPG Mediabrands filed the WARN notice on October 30, indicating that 103 employees will be permanently laid off from its media buying unit on January 2.
The layoffs at IPG follow its mega-merger with Omnicom Group (IPG), announced earlier this week.
An IPG spokesperson said the layoffs were the result of a loss of customers and not the merger.
“Unfortunately, we have informed some of our team of the need to reduce our workforce following a recent customer loss. We are committed to supporting the transition of those affected by providing them with resources, severance packages and continued benefits. These decisions are the most difficult to make in our industry, and we are grateful for the many contributions this team has made during their tenure at IPG Mediabrands,” the company said in a statement.
Arielle Garciadirector of intelligence at digital advertising watchdog Check My Ads and former chief privacy officer of the IPG-owned media agency UM, shared the WARN dossier in a LinkedIn Post Wednesday, in which she urged employees of both companies, particularly IPG, which is being acquired, to seek opportunities elsewhere.
The agreement was announced on December 9and IPG CEO Philippe Krakowsky said in a note to employees that the transaction was unlikely to be completed before the second half of next year.
“With this in mind, there will be no immediate changes to our daily lives, and we must all remain focused on delivering great results to our clients and supporting each other,” he said. writing. “I know each of you will have questions about your role as we join the Omnicom organization next year. Please know that our focus will be on taking care of our people and we will remain in constant contact on this front as our plans progress.
Omnicom CEO John Wren said during a investors are calling with Krakowsky on Monday that employees tied to revenue-generating activities will be safe, adding: “You are gold. Don’t worry about that.
Wren reiterated this point during a interview with ADWEEK that day, saying: “I’ve said it many times, and I mean it: anyone managing their income through IPG or Omnicom today, their job is more secure this morning than it was last night.
However, the companies expect to save $750 million in the first 24 months after the merger is finalized, and industry insiders have speculated about consolidation between the agency brands.
“Consolidation is coming,” one consultant and former agency CEO told ADWEEK.
