By 
Interpublic’s Deutsch New York is reducing its workforce by 41 employees, which is approximately 20% of its staff. This move is likely to be one of many across advertising holding companies. IPG attributes these layoffs to the loss of the PNC Bank account to Havas, with various departments being affected. Deutsch also operates an office in Los Angeles.
IPG, now led by its former CFO, is facing significant challenges, with its Initiative division losing the Amazon media account, which likely employs a substantial number of people.
Despite the impact of automation and programmatic technologies, media agencies still employ thousands of workers. However, creative agencies owned by major advertising holding companies, such as WPP, Omnicom, and Publicis, are increasingly under pressure. These companies are not generating the profits they desire, despite internal cost-cutting measures and mergers. More details are expected to emerge when they report third-quarter earnings.
WPP, for instance, still retains Ogilvy, which has remained relatively unaffected by internal restructuring, alongside merged entities like Wunderman Thompson, VMLY&R, and Grey, which has officially merged into AKQA Group but appears to be operating as before. Questions arise as to whether all these brands are necessary or if Ogilvy alone could suffice. In a low-growth environment with profits under pressure, there might even be consideration of selling assets to meet investor demands.
The strategy of maintaining multiple agency brands was originally to manage conflicting accounts, but if these accounts no longer generate sufficient revenue, the strategy becomes less effective.