Ogilvy axes 10% of North America staff

by Daniel Farey-Jones, Brand Republic 07-Jan-09, 09:00

LONDON - WPP Group's Ogilvy Group in North America has cut around 150 staff, or almost 10% of its workforce, according to US reports.

The staff reductions have affected group businesses from Ogilvy & Mather to OgilvyOne, Ogilvy Interactive and OgilvyAction.

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.

According to a report at the weekend, Sorrell expects divisional heads to reduce employee numbers where staff costs exceed 60% of revenues.

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, according to US trade journal Adweek.

Miles Young took over as global chief executive of Ogilvy Group on January 1, having been appointed in the summer as the successor to Shelly Lazarus, who remains as chairman.