Interpublic agency R/GA is closing its tony and underutilized office space in New York City’s Hudson Yards complex as well as its San Francisco office, according to multiple reports.
The moves are part of a broader restructuring that the agency is undertaking due to softening demand for its marketplace offering. The agency’s losses this year are upwards of $10 million.
IPG CEO Philippe Krakowsky noted on the company’s third quarter earnings call last month that both R/GA and Huge were struggling this year and posted revenue declines during the period.
And he signaled that major changes were being implement at the agencies, noting that both were “in the process of evolving their premium offerings, which is a requirement to stay ahead in their space.”
At R/GA, there are plans to reopen a smaller office in New York sometime next year.
Reps from R/GA and IPG didn’t return queries about the development.