Publicis London review could lead to redundancies

Publicis is reviewing the London agency as its starts a consultation with the staff that could lead to redundancies. It is expected to lead to at least ten redundancies.

The senior managers are meeting with Publicis Groupe worldwide chief executive Richard Pinder next week to discuss the situation. Pinder says there maybe redundancies but adds that some of the jobs may be relocated abroad.

Pinder says that the review is the result of the agency retaining the HP below-the-line account and says this meant there had to be a “new model”. Pinder adds: “There is a review of staffing. It’s a reassignment based on a win, not based on a loss.”

The Publicis network lost the advertising for the computer giant in January 2006 after 12 years but last week retained the £100m below the line business for Europe and the Middle East after a six-way pitch ( May 8).

Pinder says: “We know that retaining the account required a re-jigging of the model. There is a whole new contract with a whole new set of deliverables. I am going to champion it, I am going to push it.”

Publicis suffered a series of losses last year including Asda, MFI and The Post Office, which was a third of its billing. It led to the departure of then chief executive Grant Duncan and UK chairman Tim Lindsay. It later appointed former Vodafone marketer Neil Simpson as chief executive.

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