Does anyone else feel like some of the recent layoffs are premature? Especially with the President’s reopening guidelines today. I feel that agencies could of held on to employees longer.

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the president is wrong

likesmart

Any time someone refers to trump as "the president" I'm immediately wary

likefunny

Is this a presidential debate or a professional discussion??

(I’m just kidding let’s roast the fat bastard)

likefunny

First of all, “the President” would, and probably will, say something different tomorrow—and read something different from a piece of paper the day after that. Trump is completely out of his depth on any real problem, and anyone would be a fool to go by what he says on any given day. Hence, companies dont know what to prepare for or what to do.

Second, sure layoffs seem premature, but I think the lesson there is agencies (and lots of businesses) dont have as much money as we think. It seems like we’re learning that agencies cant survive for even two months with a giant drop in income.

likesmart

LOL. You think Trump reads?

likefunny

I think the agency structure is going to need to change on the other side of this. It’s not a sustainable model no matter how well of a run the agency is on. Tying a person to a number defeats the purpose of working on a team - at a company - where the benefit should be that if one team is down they’ll be balanced by another team that’s up.

I also think a lot of great people are going to be scared to go back to an agency, so we’ll be seeing a huge increase in the client or platform-direct workforce and agencies will be primarily freelance or contract houses.

likesmart

@SVP1 Wait, what? Barring maybe at the highest levels, we definitely do not get paid better than clients (through Manager, Director, Sr. Director, VP/SVP, etc). They are compensated better in base salary, bonus structure, benefits, you name it.

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Yep. If clients are still paying agencies or they have any reserves at all, it is. Probably just another excuse to cut staff and make people do the work of 3 people now instead of 2 for those that are left. But the agencies that don’t will look that much better to prospective employees when this is all over.

likesmart

Some clients are actually selling more product right now. So agencies that work on those clients will fare better than others.

likesmart

If you think your country is gonna re-open and everything is gonna be fine, you need to give your head a shake.

Hopefully, it doesn't reopen at all.
And if it does, you're gonna see a spike in corona cases like you haven't seen yet, and the USA is gonna get re-closed again super fast.

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Its not about ‘future’ project cuts it’s about cuts that are happening right now, everywhere. clients responsible for a massive portion of agency revenue are losing millions and started asking for relief (fee reductions) weeks ago. Think about clients your agency has in industry’s that have come to a grinding hault: airlines, hotels, retail, auto etc. they are all asking for money back that funds all of our jobs

Even the people responsible for making the lay-off decisions are worried about their jobs. These layoffs aren’t margin driven they are survival driven for all of our agencies. It will impact all holding companies and all industries outside of advertising. Completely unprecedented.

Read up on economic predictions about the global recession were likely facing. Likely very grim.

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Sure but one category doesn’t make up for the broader marketplace. And in time many of those will be impacted by loss of income felt amongst the unemployed for products that are elastic and supply chain challenges are already beginning to become an issue for many of these companies as well. Can’t restock products fast enough to meet demand.

Not if they know future projects will significantly decline or be cut. What does yearly revenue look like compared to forecasts in January?

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That orange cheese ball makes up guidelines on the fly. He’s full of shit.

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