The agency holding company, parent
$1.5 billion in revenue
Interpublic's second-quarter net loss of $13.5 million is down from net income of $109 million from the year-ago period. Revenue was up 0.6% to $1.5 billion, helped by the dollar's weakness against foreign currencies; after factoring out currency and acquisitions, revenue was down 3% on an organic basis.
U.S. revenue was up 1.7%, or 1.4% on an organic basis, while international revenue dropped 0.7%, or 8.1% on an organic basis.
The restructuring, initially announced last May, includes eliminating 1,450 positions and closing or consolidating 30 locations, Chief Financial Officer Sean Orr said.
Approximately 70% of the layoffs will come in international operations, mainly in McCann-Erickson Europe, CEO David Bell said. The layoffs won't be completed until the end of August, so the effects won't be noticed until the third quarter and beyond, he said.
The second quarter was a "mixed bag of financial progress and operational challenges" said Mr. Orr, who will step down from his post at the end of the month. While the U.S. organic revenue growth was "the first increase in some time," revenue growth continues to be spotty, he said.