Like the other ad holding companies, Dentsu Aegis Network has imposed a cost-cutting program to navigate the extreme disruption of business brought on by the pandemic.
The program includes job furloughs and salary cuts as a way to protect as many jobs as possible. The company declined to comment of reports of layoffs at some of the firm’s agencies. Executives are said to be taking heftier cuts than rank-and-file staffers.
The move follows an announcement earlier in the week that Publicis Groupe is implementing a $500 million-plus cost-cutting program for 2020. WPP and Interpublic and Interpublic have also introduced cost saving measures. Layoffs are anticipated throughout the industry as it braces for a major recession of unknown duration.
At DAN, the cost-savings program coincides with a number of high-level executive shifts, most recently the announcement that DDB CEO Wendy Clark is joining the network as global CEO in September.
Clark will succeed Tim Andree in the role, although Andree, recently back from medical leave, will remain as executive chairman with Clark reporting to him. Earlier this year Jacki Kelley succeeded Nick Brien as CEO of DAN’s America’s division.
Dentsu issued this statement about its cost-cutting program:
“Since the coronavirus outbreak Dentsu Aegis Network’s primary priority has been to protect our people, preserve and nurture our client relationships and to support the local economies and communities in which we operate. As a result of COVID-19 business impacts, we are activating a set of cost saving measures across the company to ensure business continuity and to safeguard our people’s livelihoods around the world. We consider our people to be our greatest strength and are doing everything we can to ensure we have a healthy and sustainable business for them and our clients, after this crisis passes.”
Dentsu agencies include 360i, mcgarrybowen, Carat, Isobar and iProspect.