Ogilvy sacks 10 per cent North America staff
08 Jan 2009
WPP Group's Ogilvy Group in North America has cut around 150 staff, or almost 10 per cent of its workforce, according to US reports.
The Ogilvy cuts are apparently the first wave of redundancies after WPP chief executive Sir Martin Sorrell signalled last year WPP would be reducing staff, especially in Europe and North America
The staff reductions have affected group businesses from Ogilvy & Mather to OgilvyOne, Ogilvy Interactive and OgilvyAction.
Sorrell expects divisional heads to reduce employee numbers where staff costs exceed 60 per cent of revenues.
According to sources, Ogilvy North America has been hit by client spending reductions greater than the company's new business growth, as well as losing out on current clients' spend to other roster agencies.
Miles Young was appointed on 1 January as global chief executive of Ogilvy Group as the successor to Shelly Lazarus, who remains as chairman