Report predicts 2,000 ad job cuts

by MediaWeek, Media Week 02-Nov-01

Report predicts 2,000 ad job cuts

There will be more than 2,000 advertising job losses in the UK next year, according to the grim findings of the 2002 Plimsoll Portfolio analysis.

The survey also claims the cost of salaries has increased by 41%, while sales revenue has only risen an average of 27%, resulting in inevitable redundancies across 59% of the industry. The study anticipates salary increases of 5% over the next year, which it believes 32% of advertising agencies simply will not be able to honour.

The report also claims that managers should have made decisions on cutbacks 18 months ago rather than waiting until the companies fell into financial difficulties making job losses inescapable.

Senior analyst at Plimsoll, David Pattison said: "There is little doubt that managers will use the current economic and market conditions to make decisions frankly they should have made 18 months ago."