 |
| Richard Edelman |
Edelman is cutting 240 employees, or about four percent of its workforce, to cope with the cooling down of the PR sector, according to a memo from CEO Richard Edelman.
The majority of the layoffs are senior-level staffers.
The cutbacks are a prelude to a reorganization that will restore the classic pyramid structure, which is the model of the professional services sector, as the No. 1 independent PR firm positions for growth during fiscal 2024.
Edelman noted that the shop went on a hiring binge from January 2021 to June 2022, adding 25 percent more staff to deal with unprecedented growth.
With the slowing of the economy, some regions have become top-heavy.
“Although we paused hiring over the last several months, this wasn’t enough to counterbalance the hiring we did to meet the post-pandemic surge of business,” wrote Edelman.
The departing staffers will receive severance, outplacement services and an additional six months of support through ComPsych, its employee assistance program.
“Our business continues to see growth, significant success and opportunity, but we must recalibrate today in order to continue to invest in our future,” wrote Edelman.
4media group completes its acquisition of Family Features Editorial Syndicate... Illumination PR, which represents lifestyle brands, influencers and celebrities, launches DR Media Group... EAG Advertising and Marketing acquires pay-for-performance firm INK inc. Public Relations. 
LLYC launches Signs of Pride, a campaign that revives the original protest banners of the first Pride marches... The Abu Dhabi Chamber of Commerce and Industry forms the Public Relations and Digital Marketing Working Group... Circle of One Marketing, a Miami-based, minority-owned marketing agency, is named official agency of record for Big Brothers Big Sisters of Miami. 
Vogel Group, a DC-headquartered government affairs and consulting firm, forms a strategic partnership with Montreal-based public affairs firm Boléro Stratégies... Matter Communications launches project-based offerings for B2C companies looking to increase brand awareness and visibility... Tucker/Hall, a Tampa-based PR and public affairs firm, opens a new office in Orlando. 
Why investing in public relations is ultimately about building bridges in a connected world.
Edelman is laying off 330 people (5.3 percent of its workforce) to cope with an anticipated eight percent shortfall in 2024 US revenues, and client demand for one-stop shopping for speciality services.
