So, imagine an agency has to lay people off. How does management select the people who have to go? Performance, salary, personality, etc… which factors are most important?

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They usually look at revenue streams that they can bank on, and then evaluate what functions are essential to keep that going. Then they look at specific headcount and salary, combined with performance.

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Any salary hitting 200k or over gets extra scrutiny. The lower paid people who get hit usually are under performers

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Salary.

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It’s only salary to an extent. They have a $ number they need reduce. They’ll work to find the combination to meet it by performance as much as possible. They’ll try to protect stars and move people out who don’t meet the standard or aren’t pulling their weight.

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I’d also add a factor of “how close to the core business are you.” If you’re on a team or a role that is a new or expanding capability, that might be an area to look if they decide to pull back on investing in new types of work. Or, conversely, if you’re part of a legacy team/role that the company is moving away from.

Other factors others mentioned: salary, billability, utilization. But then also sometimes it’s luck of the draw: which accounts pull back. An over staffing of a particular role or level. Client loss.

Agree that under performers tend to be the first place companies look, but stars can easily get caught in layoffs too.

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salary & billabilityyyyyyyy

We know somethings up when first step - they start reassessing each persons billable percentage to the account. Then they think who can they afford to lose.

High value (i.e imperative to the work, client relationship, creative ideas, operational success etc) don’t go first. There’s always a few people who aren’t pulling their weight and it shows

Ignore the RGA handle. I dunno how they decide. But previously for the last 20 years, every layoff list I’ve seen is pretty low level. The first layoffs are low hanging fruit… people who don’t bill as much or aren’t seen as financially valuable. There is often performance overlap.

Salary.

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