Photo by Markus Spiske on Unsplash
Omnicom, with its takeover of IPG final, has retired creative agency DDB as it cuts 4,000 more jobs.
This is on top of thousands of jobs already gone as the new world’s biggest advertising group pursues synergies of more than $US750 million.
The marriage of rivals brings together the third biggest advertising group, Omnicom, with the fourth, IPG, to form a company with 100,000 people and revenue of $25.6 billion (net revenue of $20 billion), with 57% of that in the US.
In the shrinking agencies, DDB, founded in 1949, and MullenLowe will be absorbed into TBWA. IPG’s FCB, is being swallowed by BBDO.
Omnicom didn’t outline cuts and agency moves in a statement announcing leadership changes but gave further details in interviews.
Omnicom CEO John Wren told the Financial Times more than 4,000 jobs would be cut, mainly administrative but also some leadership roles.
“There’s efficiencies, they come in the form of labour and other things,” Wren said. “But anybody that was generating revenue before December last year has a very good position with us today.”
Among agencies, those that survive include McCann, OMD, FleishmanHillard, Golin, Weber Shandwick.
The leadership changes:
Florian Adamski, CEO, Omnicom Media, including Hearts & Science, Initiative, Mediahub, OMD, PHD, and UM, as well as Acxiom
Chris Foster, CEO, Omnicom Public Relations, including FleishmanHillard, Golin, Ketchum, Porter Novelli, and Weber Shandwick
Sergio Lopez, CEO, Omnicom Production, including Content Solutions, Production Management, and Studios
Duncan Painter, CEO, Omni and Flywheel Commerce Network, featuring Omni, the advanced intelligence platform that will power all capabilities, and Flywheel, the market-leading commerce group
Troy Ruhanen, CEO, Omnicom Advertising, including BBDO, McCann, TBWA, and the U.S. Advertising Collective
Michael Larson, CEO, Diversified Agency Services, with reports including:
Dana Maiman, CEO, Omnicom Health, including Healthcare Professional & Consumer, Medical Communications, Patient Engagement, and Managed Markets
Mark O'Brien, CEO, Omnicom Branding, including Interbrand, Siegel+Gale, Sterling Brands, and Wolff Olins
Luke Taylor, CEO, Omnicom Precision Marketing, including Credera, Critical Mass, and RAPP
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