Jobs at WPP’s newly acquired American advertising group, Grey Global, will be cut by almost 7%, in a bid to reduce costs and boost profits.
According to today’s
The Times, one in six jobs will be culled at Grey’s London office by WPP, the world’s second largest advertising agency, which acquired Grey last month for £845 million.
The news comes just 18 months after the last round of job cuts at Grey and in light of WPP pledging last month to double margins at the group over the next two year from 5.8% to 11.5%.
Also, just one week after WPP acquired Grey, the group lost one of its biggest accounts, food and confectionery maker Mars, which was worth around $20 million a year in revenue.
A spokesman for Grey told The Times: “Regretfully, some redundancies are possible as a result of the network’s loss of its above the line assignments on Masterfoods brands by the end of the year. Every opportunity is being taken to keep the people on board in alternative positions within the network.”
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