IPG Maximizes Pain of Layoffs Through Uncertainty

(MoneyWatch)  Interpublic seems determined to maximize the pain of its own downsizing. It laid off 83 staffers at two of its agencies this week. The toll included 3 percent of its McCann New York office, or 30 staffers; and 53 people from MacLaren McCann Canada, which works on the crumbling General Motors business.

Note the difference between the way IPG and Omnicom are handling their cuts. Omnicom announced the full total of layoffs it intended to make -- 3,500 across the globe.

Major cuts at individual shops then came as no surprise: 189 at BBDO in North America; 20 at BBDO Bangkok. CEO John Wren got the bad news out all at once, his agency network's name endured some bad headlines, but at the end of the day everyone knew where the company stood.

At IPG it has been the opposite. Just before Xmas, Reuters reported that CEO Michael Roth was planning 2,000 layoffs, but since then the company has been silent. Into that vacuum has come the drip, drip, drip of a cut here, a slash there. It's depressing and likely crushing morale at IPG shops. Who knows where the ax will fall, or on how many? It would be better if Roth could grow a pair, give his employees a total number, and at least indicate in which regions the brunt of the action will come. At least then his employees could prepare themselves.

• See BNET's Ad Agency Layoff Counter for more details