IPG to Cut Up to 2,000 Jobs; PHD Atlanta to Close

Interpublic chief Michael Roth is considering "targeted" cuts at his network, according to Reuters. Sources say layoffs will amount to "less than 5 percent" of worldwide staff, or up to 2,000 jobs. The move was expected. As BNET reported on Oct. 28, Roth promised investors that he would "manage his margins" for 2009. BNET noted at the time:

"Managing our margins" is IPG corporate-speak for "reducing what we spend on salaries."

The move comes after Omnicom said it would lay off up to 3,500, or 5 percent, of its staff. Details of that cut are still unwinding. BBDO announced late Thrsday that 189 jobs would go at its American agencies; and media buyer PHD in Atlanta is to shut completely, with the loss of 23 jobs. Seven more jobs will be lost at PHD in Detroit. Strangely, management at Omnicom in the U.K. says it will not be affected by the layoffs.

Daren Rubins, managing director of PHD (UK) which won the £25m media business for Cadbury earlier this year, stressed the cuts would not have any impact on the UK business. "We've had a fantastic year and we're only expecting to build on this in 2009," he said.

Sources close to Omnicom rival Interpublic Group (IPG.N: Quote, Profile, Research) say its agencies are also considering targeted cuts, following promises by Chief Executive Michael Roth to manage the business "conservatively" in the face of the downturn.

Roth told investors in October that the parent company of DraftFCB, McCann Erickson, Lowe and dozens of other agencies would remain "extremely focused on controlling costs and managing margins" as the financial crisis weighed on spending.

For now, sources estimate that job losses at the Interpublic agencies will amount to less than 5 percent of the worldwide staff, meaning no more than 2,000 jobs.

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