“Over the past few years, our Organization has undergone significant changes and embraced new strategic directions,” Seung Chung wrote in his email. “While change is a natural part of growth some of us have recognized that it’s time to pursue new opportunities. As we transition from Cashmere, we can no longer ensure the same level of oversight associated with the Cashmere name.”
Monks declined to comment and executives mentioned in the email didn’t respond to requests for comment or declined to comment.
More departures are expected, according to multiple people close to the situation.
Cashmere, which launched over 20 years ago, has made a name for itself for its work that has a cultural influence. Its roots were in working with entertainment companies and it then expanded beyond that to traditional brands. Some of its key clients include Kraft Heinz, FX, Marriott Bonvoy, Disney, Netflix and Max.
Cashmere agreed to a merger deal with Monks, which was then known as Media.Monks, in 2021. The deal, like most of S4’s mergers, was centered around Cashmere being compensated through half shares and half cash.
The email was sent just a day after S4 Capital, led by Executive Chairman Martin Sorrell, announced a third-quarter net revenue decline of 12.6% on a like-for-like basis and forecast a low double-digit decline in full-year like-for-like net revenue.
While the exact cause of the Cashmere departures is unclear, they continue the reduction in Monks’ staff. At its largest, Monks had around 9,000 employees—it currently has around 7,500. The company is “seeing a significant reduction” in the size of its staff “as we bring our capacity more in line with the level of revenue,” S4 announced in its Nov. 7 quarterly report.
S4 shares on Nov. 13 hit an all-time low of 29 pence (equivalent to 37 cents) in trading on the London Stock Exchange, down 97% from their September 2021 all-time high.
