GM's Planworks Cuts 25 Positions

Automaker Plans to Shift Half its $3 Billion Budget to Digital, One-to-One Marketing

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NEW YORK (AdAge.com) -- Planworks, Starcom MediaVest Group's dedicated General Motors Corp. buying-and-planning unit, has cut 25 jobs.

The cuts come as GM is preparing to shift half of its $3 billion ad budget into digital and one-to-one marketing within the next three years.

Laura Desmond, CEO of Starcom MediaVest Group, the Americas, has said in the past that the shifting of dollars to digital will allow Planworks to share resources across Starcom MediaVest Group.

"It is always difficult to make these decisions," Ms. Desmond said in a statement regarding the job cuts. "But we must also heed the evolving landscape, and we believe a streamlined model will allow us to make more strategic investments in the capabilities that are driving growth in this industry, including digital talent and tools, multicultural, consumer intelligence/research and innovative vendor partnership opportunities -- assets that become increasingly vital to the success of all consumer connection plans."

The move also follows the stepping down by Dennis Donlin, Planworks' former president, in April. He was replaced by Ken Taylor, former exec VP-group client leader at Starcom USA.
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