Job cuts at Omnicom
BLS stats offer a view of overall ad employment, but regulatory filings show what’s up (or down) at specific companies.
Omnicom this week became the first major agency holding company to file its annual report for calendar year 2024.
Omnicom’s U.S. employment totaled about 21,900 people at year-end 2024, down 11.3% or 2,800 jobs from a year earlier, according to Ad Age Datacenter’s review of annual filings.
The company employed about 74,900 people worldwide at the end of 2024, down 1.3% or 1,000 jobs from year-end 2023.
These drops came despite Omnicom adding more than 2,000 employees when it bought Flywheel Digital, a U.S.-based digital commerce business, in January 2024.
Omnicom’s annual filing cited a “reduction in headcount arising from our ongoing repositioning actions and changes in our global employee mix.”
Speaking on an earnings call this week, Chairman-CEO John Wren said Omnicom in 2024 “established four state-of-the-art centers of excellence in India and expanded our nearshore operations in Latin America,” initiatives the company is deploying “to improve service delivery and lower labor costs.”
It’s notable that Omnicom disclosed 31,200 employees in the “Americas” at year-end 2024, unchanged from a year earlier even as U.S. staffing fell. The inference is that Latin America employment rose.
Omnicom, assuming it completes its pending acquisition of Interpublic Group of Cos., is expected to make job cuts at the combined enterprise as it works toward $750 million in annual cost savings.
On the earnings call, Wren said: “Importantly, these cost synergies will not impact employees dedicated to servicing our clients and generating revenue. Instead, they will arise from streamlining holding company, middle office and regional positions, as well as from eliminating duplicative overhead, back-office and third-party expenses across our larger combined global footprint.”
Wren also said: “In assessing talent, we will adopt an approach focused on selecting the best individuals from across the organizations, irrespective of their current affiliation.”
“We anticipate identifying even more savings once the companies are combined,” Wren said.