NEW YORK: Interpublic Group confirmed plans to cut 10% of its
workforce at the firm's second quarter results presentation on July
In the first half of 2001, IPG firms cut 2,200 executives from the
It hopes to meet its 10% target by the year's end.
However, Larry Weber, chairman and CEO of Advanced Marketing Services,
said the PR firms had 90% of their cuts behind them, estimating that the
firms under his aegis had already shed around 100 people.
The company, whose PR brands include Weber Shandwick Worldwide (now
incorporating BSMG) and Golin/Harris International also announced
disappointing PR revenues. While IPG's promotion, event and direct
marketing division saw 7% growth, contributing $380 million, PR
grew by just 1% with revenues at $153.9 million.
Weber admitted the firm's lackluster performance in the period and said:
"Weber Shandwick was heavily into technology. Clients have cut back but
they didn't leave. We're hoping they'll come back."
IPG chairman and CEO John Dooner warned the company's full-year results
would fall below expectations, leading Merrill Lynch to cut financial
Overall second quarter revenue decreased 4.3% to $1.7 billion,
while net income before one-time costs was $117.1 million in the
Dooner was candid in his press statement. "As a company, we did not
reduce costs as quickly and as deeply as needed," he admitted.
"Obviously, these results aren't acceptable."