WHY AGENCIES ARE QUIETLY LAYING OFF MID-LEVEL AND SENIOR EMPLOYEES

Shops including R/GA, Ogilvy, Grey, Huge, Anomaly and Mother cut staff in January as they restructure, adapt to shrinking client budgets and deal with client losses

Agency employees who survived last year’s wave of layoffs are once again holding their breath as cutbacks resume.

“We continue to hear of challenges for some agencies regarding the ability of marketers to commit beyond a short-term view and that creates instability for some as they manage costs. An increase in project-based work vs. retainer reinforces the challenges of forecasting and planning for long-term needs. As a reminder, most agency costs (~75%) are people related,” 4As CEO and President Marla Kaplowitz wrote in an email.

Continue reading on AdAge.