IBM makes major cuts on Ogilvy PR

LONDON: IBM has dramatically cut the fee spend on its account with Ogilvy PR Worldwide in London, from over pounds 500,000 (dollars 742,000) in 1998 to just over pounds 100,000 (dollars 148,000) this year.

LONDON: IBM has dramatically cut the fee spend on its account with Ogilvy PR Worldwide in London, from over pounds 500,000 (dollars 742,000) in 1998 to just over pounds 100,000 (dollars 148,000) this year.

LONDON: IBM has dramatically cut the fee spend on its account with Ogilvy PR Worldwide in London, from over pounds 500,000 (dollars 742,000) in 1998 to just over pounds 100,000 (dollars 148,000) this year.

While there is speculation that cutbacks have led to redundancies at the WPP firm's Canary Wharf base, Ogilvy MD Donna Zurcher has put recent departures down to 'culture changes.'

IBM has used Ogilvy for more than five years in the UK. In the agency's early days it was the only client and until last year was still its biggest spender.

But Ogilvy's role was this week scaled back to involve only the financial management of IBM's 42 agency roster across EMEA. It has been stripped of its role coordinating the work of the roster, a task that will now be performed in-house from Paris by IBM's EMEA media relations director Ian Colley. More responsibility will also be taken by country PR heads and retained agencies in each market.

Recent departures from the IBM staff at Ogilvy in London include account handlers Claude Cameron and Kate Martens, both of whom left two weeks ago following what practice head and board director Simon Quarendon described to staff as a 'significant drop in income.'

The departures follow those of directors Julian Goldsmith, Tim Kitchin and Tom Delaney, and the folding of the financial and professional services division into the wider corporate practice after just eight months as a stand-alone unit.





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