Bates Group integrates several key Cordiant companies, including advertising agency Bates Worldwide; direct and interactive firm 141 Worldwide; branding and design consultancy Fitch Worldwide; and health-care specialist Healthworld.
Consolidation and layoffs
As part of the new structure, the company expects to "deliver substantial savings through reduced management costs, the consolidation of operations and the elimination of redundant support functions," the company said in a statement. Bates Group will allow Cordiant to establish a single profit-and-loss statement for the entire company.
The move comes at a
Last month, Cordiant announced CEO Michael Bungey will leave the company next March and will be replaced by David Hearn, chairman-CEO of Bates Worldwide.
Three regional CEOs
As for Bates Group, its management will consist of three regional chiefs and four operating company chiefs, all of whom report to Mr. Hearn.
Under the new structure, Colin Hearn, Paul Stead and Steve Girgenti remain in their current roles as chief executives of 141 Worldwide, Fitch Worldwide and Healthworld, respectively. Mr. Girgenti assumes the regional role of CEO of Bates Group Americas. Similarly, Toby Hoare, currently CEO of Bates Europe, and Ian Smith, CEO of Bates Asia Pacific, take on additional responsibilities as chief executives of Bates Group Europe and Bates Group Asia-Pacific, respectively.
Executives responsible for specific disciplines in certain markets will report to two executives. For instance, Jay Farrell, CEO 141 Worldwide, Americas, will report to 141 Worldwide's Mr. Hearn as well as Bates Group Americas' Mr. Girgenti.
A search for the head of Bates Group, Americas, as well as of Bates Worldwide, remains under way.