Wag Ed released a statement this week confirming it would ‘potentially reduce its workforce in the London office by approximately six people’ but declined to comment further. The agency is thought to have had 58 members of staff at the last count.
The statement said there would be a consultation period with employees who could be affected but said the Brussels, Paris and Munich offices would be safe.
Other major agencies are understood to be considering redundancies. The UK boss of one ‘top ten’ agency said: ‘Many agencies may be waiting until after Christmas. We may see an increase in job cuts in the new year. For some big agencies, the redundancy consultation process can sometimes prove more costly than the money saved by making redundancies, which might explain why there hasn’t been a huge spate of large agencies making job cuts yet.’
Meanwhile, a gloomy report by industry analyst firm Plimsoll claims 5,000 more PR jobs could be at risk next year owing to falling revenues. But it concludes the fall could be good news in the long term as it may encourage agencies to implement cost cuts and get themselves into better shape.