Facing “economic realities” and recent account losses, Deutsch New York is taking a bold step by letting go of 41 of its staff members. This comes as a part of the agency’s strategic shift to adapt to the changing advertising landscape.
This recent cut will impact nearly a fifth of its workforce, and a significant reason behind this move is the agency’s loss of the PNC Bank account to Arnold Worldwide earlier this summer. The renowned IPG-owned agency is setting its sights on the future, intending to rely more on “permalancers” and aiming for a tech-driven transformation as it sets its path toward 2024. Vonda LePage, the agency’s EVP and director of corporate communications, shed light on the situation, stating, “These are gut-wrenching actions but necessary for the health of our business.”
In a silver lining, those affected by the layoffs will remain employed until year-end and will be provided with severance packages. Furthermore, Deutsch is actively assisting these employees in their quest for new job opportunities.
However, these layoffs aren’t isolated. The advertising world has witnessed significant changes this year. Agencies like Stagwell, GroupM, R/GA, and Huge have also downsized their teams. High-profile departures also made headlines, with executive creative directors like David Suarez and Danny Gonzalez moving on from Goodby Silverstein & Partners New York, and Dentsu Media Americas CEO, Doug Rozen, departing amidst a broader organizational reshuffle.
The advertising landscape is undergoing a seismic shift, pushing agencies to adapt and recalibrate. While layoffs are always a tough call, they sometimes become necessary for long-term stability and growth. It’s heartening to see Deutsch New York offering a helping hand to the affected employees during these challenging times.