R/GA’s struggles have led to a different spherical of layoffs within the U.S., with greater than 100 workers being let go earlier this week, based on three sources aware of the matter. Two sources indicated that the cuts signify 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 by way of 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 circumstances are making an impression on firms this yr, and R/GA is not any exception. Because of this, R/GA is actioning a leaner, extra nimble technique shifting ahead,” the company stated in an announcement. “On Tuesday, April 18, we undertook the troublesome but obligatory step of lowering our workforce. Troublesome, as we can be parting methods with some extraordinarily gifted colleagues, and buddies. Transferring ahead, we’re dedicated to a extra versatile mannequin that can higher assist our ever-evolving trade panorama, our folks, our shoppers and our work.”
The company started a small spherical of layoffs on Monday with a number of high-ranking workers being let go on the ecd and svp degree throughout the corporate. The tech and content material groups have been hit significantly onerous, based on 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 advised there can be extra layoffs Tuesday morning. Not like earlier rounds the place workers got the chance to remain on for 2 extra weeks, the staff let go this week had their entry lower off instantly.
Earlier this yr, 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, based on two sources aware of the decision.
R/GA has misplaced scope with quite a lot of shoppers, with one supply confirming Advert Age’s earlier reporting that Samsung, Verizon, Nike, Ally and Siemens had reduce their spending with the company.
In February, CEO Sean Lyons left R/GA to take the worldwide capabilities lead function at Accenture Tune, 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 function main the U.S. workforce alongside Fabiano Coura, president of the Americas.
