Interpublic Group of Cos. – parent company to agencies such as Weber Shandwick, Golin, FCB and McCann – released its Q1 earnings earlier this week, and Lindsay Rittenhouse at AdAge reported on some of the details about the impact of the COVID-19 pandemic:
- Like its competitor Publicis Groupe did in North America, IPG posted a slight organic revenue increase – 0.8% – but noted that it faces a “very difficult second quarter”
- IPG acknowledged it has implemented cost-cutting measures such as “deferred merit increases, freezes on hiring and temporary labor, major cuts in non-essential spending, furloughs in markets where that option is available and salary reductions where possible or appropriate”
- IPG reduced base compensation up to 25% at a number of its agencies
- Management team salaries at the holding company level have “are deeper than anything else … seen in the industry”
- IPG is planning additional “staffing reductions” at firms who have significant clients in the retail, hospitality and event industries
Denver Public Relations Blog 