Arnold Lays Off 40; Staffers Vent Anger Over Shop's Identity Crisis

Arnold Worldwide announced 40 layoffs in its Boston HQ office, which has 600 staffers. That round of cuts comes after just under 50 layoffs in October.

The move has triggered an outpouring of bitterness on Adweek's comments boards. (Note that Adweek.com continues its evolution from provider of agency news to provider of free bulletin boards to disgruntled agency staff. Last time it was everyone who ever met DDB's Lee Garfinkel. This week, Arnold. Perhaps Adweek should expand its comment board offering.)

In truth, Arnold has been one of those agencies that entered an identity crisis the moment it lost the Volkswagen account to Crispin Porter & Bogusky. Arnold had relaunched the new Beetle using iconic white-background ads.

Since it was folded into Havas, the parent has also downplayed Arnold. Adweek:

Havas praised gains by its Euro RSCG and MPG networks, but mention of its other key holding, Boston-based Arnold, was noticeably absent. In fact, that shop's big win of '08 -- Carnival Cruise Lines -- was lumped under the results for Havas' "other agencies."

... That agency and all Havas creative units -- including digital, design and marketing shops -- will [now] report to Euro RSCG CEO David Jones as part of an umbrella group called Havas Worldwide.

Here's a selection of the tirades:

Ad Guy - End of an era. No longer autonomous. And the expected lay-off of 30+ more employees this week will shrink it even further. Word in Boston real estate circles is that Arnold is trying desperately to unload floors. Arnold's senior management has finally run the place into the ground. Sad.

Bye Bye Arnold - The beginning of the end. May keep Boston office for conflict avoidance, but can't see much more of a role.

adhound - Oh, please! If Arnold had been doing good creative all along this wouldn't be happening now. The work has been crap for a couple years now. All Favat ever cared about was truth - he didn't know how to do anything good on any other brand. This isn't the fault of 'greedy execs' - this is chickens coming home to roost.

adhound - The article is factual - Havas has obviously lost faith in Arnold's management. The layoffs are factual - 30 or so more this week on top of around 140-150 over the past two years. The loss of revenue is factual - RadioShack, FootJoy and ESPN within the past few weeks alone. The industry perception is factual - everyone outside the walls is looking at it like a train wreck. Oh, and what's that I see right below this column? More great Arnold news - this time from across the border. Wake up, Speculation.

Steve C - All shops are doing poorly but Arnold's done nothing creatively or on the new business front since Favat took over. I don't know of any "fat" that was trimmed over there. I do know of some good people, great at their jobs who were let go. I also know of a lot of 22 year olds that are horrible at their jobs that now run the place. What a great shop it used to be. Without a change in management I don't think Arnold will be around in a few years.

Arnold lover - The thing I hate about blogs is any liar or angry dickhead can write this type of drival. Does doing that make you feel better? the lying? the bashing? I know you must be hurting from the loss of your job. But this is no way to move forward. So to straighten out steve c, adhound, and realist. You are probably one person anyway. Since Pete Favat was promoted Progressive, Volvo, Carnival to name a few have joined Arnold. Pete and Pam Hamlin were put in charge at the worst time in the agency history. the day kerri martin told upper management VW was leaving. Lets face it. VW was the only thing winning at Arnold. Then truth came brought in by Pete, then ESPN came, then Timberland to name a small fraction. The leadership Pete and Pam have provided created the most successful two years the agency has ever seen. Sorry things didn't work out for you at Arnold. Maybe you should stop being so disgruntled and clueless. (22 year olds running the agency?) Get your facts straight at least. And maybe try to spend time doing something productive. Or do you find it more satisfying shredding people who are actually trying, working hard and doing something good? The world is already full of what you have to offer. Try something new for a change.

"hey man" - Talk to anyone still there or once there and the truth will emerge. Arnold was a regional nice shop with solid account service and media. Then after a couple of mergers in the 90s, lightning was caught in a bottle and they won VW. The ensuing years were the most successful they ever saw with the greatest work, greatest team and greatest vibe. It was fun and great for Boston. Ed took the right time to sell out and make some money. Everyone was living high. Except the people who were not a part of VW. Yes, they lived on the coattails of the brilliant work done by the VW team -- the BEST people at the agency. But they all lived on the scraps doing some other solid work -- but they also were jealous of the great success of the VW folks. Favat never won a piece of business -- truth was Bogusky's account, not his. He lost Nextel. Pam never won a single account on her own. Ever.

"hey man 2" - So then the joyride was over because of Kerri Martin's politics (hey, great decision VW -- your sales have decreased to levels from 1997 -- your brand is screwed thanks to CPB). And the knives came out. Pam and Pete gathered together with others to blame the VW loss and tough year on all the people who had brought them the success (and money) for 10 years -- creative and account alike -- if you were not on Pam or Pete's team, you were cast aside. Or minimized. And in the last 4 years, it has been a train wreck. It is back to being a regional shop. Poorly managed. Fran back from his NY outpost. Yes, Volvo (tiny) Progressive (awful and cheap) Carnival (towels? really?) on the heals of losing a much bigger Royal and Celebrity. Not success. Not wins. Much less than the losses of big accounts and ones more prestigious. ESPN gone. McDonald's decreasing fast. truth is nothing. Shack is leaving. Tyson is advertising? fidelity has shrunk. Ocean Spray a bright spot. DC doing well. NY has nice Hersheys work. But a national agency it is no longer. There are still too many highly paid people not being held accountable. And they will stay while others are let go -- the remainder are getting a pay cut. David Jones oversight is their best chance. If he did a thorough review, he could clean house, put in new leadership, and run it like a business, not a pet project. It is a shame. It was truly once great. But everyone is overworked, under-appreciated, and not given great leadership. David -- havas and euro can give this place another chance. But only after it gets a clean sweep and reality check. Sorry, Arnold fans, but this is the truth. And everyone knows it.

JFreel - My wife looked over my shoulder as I was reading these posts and said, "Boy, the people in your business sound like spoiled, whiney brats." God, I love her.

arnold-ite - Anyone working in Boston advertising should not be bashing one of his or her three employment options in this city with such ferocity. That being said, please allow me to bash. Arnold was arrested in development when it lost VW. It couldn't accept that it was no longer the agency that once made a brand like that great. And as when a mother loses a child (her favorite child), it refused to move on. In fact Arnold dwelled on this. They brought it up at every pitch. Desperately trying to prove that they were still up to snuff â€" certain that every new win would replace the gaping hole in its heart left by the immortal beloved. Meanwhile leaving the existing accounts (the not-so-favorite children) starving for attention. Let's face it. The VW bus left a LONG time ago. And took all the creatives who made it happen with it. It's hard letting go of something great. I'll admit. Thems was some good ole' plushy times. But there comes a point when you have to put on your life preserver, hang up your violin and start looking for a new ship. A floating behemoth with no one at the wheel just ain't going to cut it anymore. We should all wish Arnold the best of luck. And hope they wake up in time to give it another go.

arn fan - all this in-fighting is a little embarassing. Favat may as well bring his stripper pole back, and put one in the lobby as well.