WPP makes staff cuts at Y&R

LONDON (Brand Republic) – UK-based advertising and communications group WPP Group is cutting around 100 staff at Young & Rubicam, with more cuts expected before the end of the year.

Y&R staff have been laid off, mostly in corporate departments such as legal, finance, purchasing, IT and human resources. Staff at other Y&R businesses are also expected to go.

While job losses were inevitable after hints from WPP chief executive officer Sir Martin Sorrell, their size and the fact they came from Y&R’s advertising business came as a surprise.

On completion of the Y&R deal, Sir Martin wrote in an internal email, “All these ‘tribes’ are warmly welcomed both because of their successful records and their distinctive brand strengths. The only dangers are the familiar ones –- overconfidence, arrogance, bureaucracy and lack of responsiveness to clients.” No mention of redundancies was made.

Other Y&R companies which could lose staff include: Media Edge; multicultural agencies Bravo Group and Kang & Lee; PR groups Burson-Marsteller and Cohn & Wolfe; design shop Partners; healthcare agency Sudler & Henessey; and UK technology agency Banner Corp.

In 1989, when WPP bought Ogilvy & Mather in a hostile takeover, the company cut 50 staff in overlapping departments such as financial and administration.

This article was first published on brandrepublic.com