- Paris-based Havas, which owns ad agencies Havas Creative, Arnold, and Havas Health and You, laid off around 200 people in the US and an undetermined number in the UK this week.
- The cuts came as clients have slashed spending due to a weaker-than-expected recovery from the coronavirus pandemic.
- As a private company, owned by French media conglomerate Vivendi, Havas was able to delay cuts until weeks after rivals like Omnicom and Publicis Groupe.
- Click here for more Business Insider stories.
Over the past several months, the major advertising holding companies have cut tens of thousands of jobs as clients cut spending amid the coronavirus.
This week, Paris-based Havas became the last of those companies to make cuts, shedding around 200 jobs at agencies Havas and Arnold in the US and an undetermined number in London, multiple people told Business Insider.
Havas employs approximately 17,000 people across 100 countries.
Clients have slashed spending due to the coronavirus pandemic
A Havas spokesperson said the company expects its business will eventually recover, but that this trend will not be the V-shaped curve many hoped for.
"COVID-19 has had a significant impact on several of our clients, varying greatly depending on business sector and geography," said the spokeswoman. "As a result, some of our agencies are impacted depending on their client portfolio."
Havas's clients include TD Ameritrade, Puma, Dr Pepper, and pharma giant Reckitt Benckiser. Arnold is best-known for the Progressive Insurance ads starring spokesperson Flo.
Havas's healthcare business was not affected as dramatically
Havas is privately owned, by French multimedia conglomerate Vivendi, which has helped it stave off cuts until after public holding companies like Omnicom and Publicis. Senior-level employees at other major holding companies have also taken voluntary salary reductions to avoid or minimize layoffs.
Havas chief creative officer Harry Bernstein shared the news with staff at the agency's New York headquarters on July 7, saying it was "a hard day for everyone here," said a source with direct knowledge.
Sources said some Havas agencies, like Havas Health and You, which creates campaigns for healthcare and pharmaceutical clients, were less affected by the layoffs.
Got more information about this story or another ad industry tip? Contact Patrick Coffee on Signal at (347) 563-7289, email at [email protected] or [email protected], or via Twitter DM @PatrickCoffee. You can also contact Business Insider securely via SecureDrop.
Do you have a personal experience with the coronavirus you’d like to share? Or a tip on how your town or community is handling the pandemic? Please email [email protected] and tell us your story.
Get the latest coronavirus business & economic impact analysis from Business Insider Intelligence on how COVID-19 is affecting industries.
Source: Read Full Article