IPG Mediabrands To Lay Off 103 Staffers

IPG Mediabrands plans to lay off 103 people on Jan. 2., according to a WARN notice filed in the state of California.

The Worker Adjustment and Retraining Notification Act requires companies with 100 or more employees to provide notifications of facility closures or mass layoffs 60 calendar days in advance. IPG Mediabrands filed the WARN notice on Oct. 30, saying 103 employees will be permanently laid off from its media buying unit on Jan. 2.

Layoffs at IPG come on the heels of its mega-merger with Omnicom Group (IPG), announced earlier this week.

An IPG spokesperson said that the layoffs were the result of a client loss, and not due to the merger.

“Regrettably, we informed a portion of our team about the need to reduce our workforce in light of a recent client loss. We are committed to supporting the transition of those impacted by providing resources, severance payments, and continuation of benefits. These decisions are the hardest ones to make in our business, and we are grateful for the many contributions this team has made during their time with IPG Mediabrands,” the company said in a statement.

Arielle Garcia, director of intelligence at digital advertising watchdog Check My Ads and former chief privacy officer at IPG-owned media agency UM, shared the WARN filing in a LinkedIn post Wednesday, in which she urged employees of the two companies—particularly IPG, as it is being acquired—to pursue opportunities elsewhere.

The deal was announced Dec. 9, and IPG CEO Philippe Krakowsky said in a memo to employees that the transaction was unlikely to close until the second half of next year.

“With that in mind, there won’t be any immediate changes to our day-to-day, and we all need to remain focused on continuing to deliver great results for our clients and supporting each other,” he wrote. “I know each of you will have questions about your role as we become a part of the Omnicom organization next year. Know that our focus will be to care for our people, and we will be in continual contact on this front as our plans progress.”

Omnicom CEO John Wren said during an investors call with Krakowsky on Monday that employees tied to revenue-generating activity will be safe, adding, “You’re gold. Don’t worry about it.”