DLKW axes staff to prop up Creston share price

Delaney Lund Knox Warren & Partners has made 5% of its staff redundant, almost a year after it was bought by listed marketing services group Creston.

Delaney Lund Knox Warren & Partners has made 5% of its staff redundant, almost a year after it was bought by listed marketing services group Creston.

It made nine redundancies across the agency last week, after hiring 83 staff last year during a period of growth. Last year DLKW won 11 pitches totalling â¬135m (&£92m) of international business and lost only one.

Some industry sources say the redundancies may have been made in order to ensure group profitability, following a recent fall in share price for owner Creston, which bought the agency for &£32.8m.

Insiders cite as the reason for the lay-offs the loss of the &£11m Burger King business, and of Premier Foods’ Branston range to Clemmow Hornby Inge last month because of a client conflict.

A source close to the agency denies that management was under pressure from Creston: “Businesses work on the principle of growth. DLKW had a great year and was bringing people onto the staff, but if something goes wrong that is largely out of the management’s hands, you have to rein all that in a bit.”

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here