US agencies cutting back on staff

Large US advertising network are axing staff due to the dotcom collapse, restructuring, moving clients and cutbacks in account spend.

Large US advertising network are axing staff due to the dotcom collapse, restructuring, moving clients and cutbacks in account spend.

Grey Global Group's Mediacom; Interpublic Group of Companies' Lowe Lintas in New York; Omnicom's BBDO North America; Publicis Group's Fallon in New York and WPP Group's Young & Rubicam are all cutting back on staff.

Agency recruitment firms said companies were becoming more cautious due to "self-fulfilling" recession fears.

Analysts said the most vulnerable agencies were privately-owned or those which relied primarily on creating and placing ad campaigns rather than working on additional services. Agencies with dotcom clients are also under pressure to cut back on staff.

Y&R's job cuts came following the agency's acquisition by WPP. Lowe laid off staff after losing the Burger King account in the US.



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