Omnicom Group CEO John Wren has outlined a new spate of measures being introduced across the company to deal with the impact of COVID-19.
In a memo to 70,000 global staff, Wren confirmed “internal measures” were being put in place to ensure the business can adapt to changing client demands.
“Regrettably, this will include furloughs and staff reductions across many of our agencies,” Wren said.
“We are doing everything we can to limit staff reductions, and to take care of those who are affected.”
Wren stressed the group would look to use furloughs rather than permanent reductions where possible, with the aim to bring staff back when conditions improve.
Omnicom is also looking to redeploy staff into growing areas of the business, such as Omnicom Health Group.
In terms of pay cuts, the senior leadership team will be taking a significant hit.
“Omnicom’s executive leadership team, including our Network and Practice Area CEOs, are reducing their salaries by a third, and I am waiving 100 perc ent of my salary, through the end of September,” Wren said.
The company is also eliminating “discretionary costs and capital expenditures”, including award show participation and industry events.
