Interpublic CEO Michael Roth is expected to cut payroll up to 2,000 in an effort to cope with the “advertising depression.”
Tom Cunningham, spokesperson for IPG, told O’Dwyer’s the firm has not commented on that report that ran in Reuters.
Roth, during an October presentation, vowed to manage IPG “conservatively” and remain competitive on a margin basis with WPP and Omnicom. He said General Motors, IPG’s No. 1 client, was a big concern. Roth promised to monitor GM’s receivables very closely. IPG employs 60,000.
OMC CEO John Wren is cutting about five percent or 3,500 people from its 70,000 workforce. The firm has been hurt by cutbacks at Chrysler and the loss of the Pepsi business.
That ad/PR conglom issued the following statement: “Given current economic conditions, our companies have reviewed their staffing levels as they relate to their current business requirements. Some, but not all, will have to make adjustments.”
WPP chief Martin Sorrell already has announced plans to reduce headcount in '09 in mature markets such as the U.S. and Continental Europe.
Cuts are expected at WPP’s Ogilvy & Mather operation next month.