IPG’s Mediabrands unit underwent another round of layoffs within its UM and Magna units last week, Digiday has learned — but among them are evp and svp level staffers whose roles were not directly connected to revenue generation. It’s the latest in several small waves of layoffs conducted across Mediabrands’ various media agencies (mostly UM) in recent months, on top of several high-level executive departures that have also had an impact on operations there.
Several sources close to the company attributed the layoffs, and even some of the departures, to client losses, which have included UM’s SharkNinja and BMW — as well as the looming departure of Spotify’s global account, which put UM into review — and from which UM has already been dropped after the first round of review (even though technically it’s still a global UM account today). Those losses, despite other wins, are said to have put significant financial pressure on UM’s North American revenue situation, while globally the media agency is holding its own. Mediabrands, it seems, is in better shape as the other agency brands, with a number of client wins that offset losses.
“It’s very unusual for an incumbent to be eliminated before a final decision is made,” said one source about UM already being out of the review process for Spotify. The client did not respond to a request for comment.