R/GA’s struggles have led to a different spherical of layoffs within the U.S., with greater than 100 staff being let go earlier this week, in accordance with three sources conversant in the matter. Two sources indicated that the cuts symbolize about 20% of the company’s U.S. workforce. R/GA denied that the quantity is over 100.
The newest layoffs come after R/GA has gone via quite a few rounds since Adweek first reported a 5% discount of the New York workforce in June 2022. In keeping with a supply, R/GA’s income fell $50 million year-over-year from its excessive water mark in 2021 to 2022.
“It’s no shock that market situations are making an impression on firms this 12 months, and R/GA isn’t any exception. Because of this, R/GA is actioning a leaner, extra nimble technique shifting ahead,” the company stated in a press release. “On Tuesday, April 18, we undertook the tough but mandatory step of decreasing our workforce. Tough, as we might be parting methods with some extraordinarily gifted colleagues, and mates. Transferring ahead, we’re dedicated to a extra versatile mannequin that can higher assist our ever-evolving business panorama, our folks, our purchasers and our work.”
The company started a small spherical of layoffs on Monday with a number of high-ranking staff being let go on the ecd and svp degree throughout the corporate. The tech and content material groups have been hit notably arduous, in accordance with one supply. Following the preliminary spherical, the corporate held an all-hands assembly, led by artistic chair Tiffany Rolfe and interim world CEO Robin Forbes. Founder Bob Greenberg additionally attended the all-hands assembly.
Staff have been informed there can be extra layoffs Tuesday morning. In contrast to earlier rounds the place staff got the chance to remain on for 2 extra weeks, the workers let go this week had their entry reduce off instantly.
Earlier this 12 months, R/GA had an exploratory name with one of many largest retail chains within the U.S., however the model prematurely ended the decision due to R/GA’s presentation, in accordance with two sources conversant in the decision.
R/GA has misplaced scope with various purchasers, with one supply confirming Advert Age’s earlier reporting that Samsung, Verizon, Nike, Ally and Siemens had in the reduction of their spending with the company.
In February, CEO Sean Lyons left R/GA to take the worldwide capabilities lead position at Accenture Music, whereas Rolfe was named chair of R/GA and Forbes stepped as much as be interim CEO. In December 2022, R/GA named Shannon Washington chief artistic officer. In keeping with a supply, evp and managing director of New York April Quinn has taken on a bigger position main the U.S. crew alongside Fabiano Coura, president of the Americas.
