Omnicom Group Latest to Announce Job Cuts, Furloughs

Omnicom Group is the latest agency parent company to warn of impending job cuts and furloughs due to the COVID-19 pandemic. In a memo to staff, Omnicom chairman and CEO John Wren shared:

Unfortunately, COVID-19 has had a profound impact on the economy, on our clients’ businesses, and in turn, on ours. While we hope for a swift recovery, we have to respond quickly to the reality of the moment, to ensure the sustainability of our business and our ability to continue to provide our clients with outstanding service. 

Since my last note to you, we have solidified some of the internal measures to adjust our business to meet the changing needs of our clients. Regrettably, this will include furloughs and staff reductions across many of our agencies. We are doing everything we can to limit staff reductions, and to take care of those who are affected.

PRWeek Survey Pinpoints COVID-19 Impact

What impact is COVID-19 having on PR campaigns? According to a PRWeek survey:

  • Consumer and brand campaigns are most affected
  • 40% of in-house respondents said their budgets have already been cut (24% also said their budgets have increased)
  • 26% percent of respondents said hiring is frozen and 16% said layoffs have occurred
  • 43% of agency respondents said clients have reduced retainers (although only 24% of in-house respondents said they have reduced them)