Reports say the reductions were COVID-19 coronavirus pandemic-related.
“Droga5 has made the decision to transition out a number of our people as we continue managing our business for the long term to best serve our clients,” an agency spokesperson said in a statement to Ad Age’s Lindsay Rittenhouse. “All of those affected will be provided severance benefits. We are grateful for all of their contributions to the agency.”
The agency, whose clients include HBO, The New York Times and IHOP and has received critical acclaim for its creative, lost about 40 people according to Business Insider.
It is clear now that no matter how good you are, and Droga5 is good, producing a large-scale campaign is extremely challenging in the era of COVID-19 and a pandemic. It’s also proven costly for some advertisers to ensure that proper health and safety measures are in place to protect those creating the work.
As noted in Business Insider, all of the major holding companies, including WPP, Publicis Groupe, Omnicom and Interpublic Group, have recently experienced staff reductions with fallen client demands and increased struggles to commercial production.
When Droga5 joined Accenture last year, it was generally believed to be a prudent move as Accenture’s infrastructure was considered stable and could act a possible safeguard against staff reductions.
It’s notable that Droga went through several rounds of layoffs before last year’s acquisition.
In August, a paper in Australia (founder David Droga’s country of origin) reported that Accenture would cut 25,000 workers globally, about 5 percent of its workforce, due to the pandemic. But an unnamed source told Business Insider the Droga5 cuts are due to the agency’s business, not mandated by Accenture.
SOURCE: Business Insider