Publicis Communications goes for restructuring after P&G reduces work: Reports

P&G's move is consistent with its CMO Marc Pritchard's strategy to increase efficiency and reduce waste through better transparency from media partners, while lowering its digital ad spends and production costs.

Publicis Communications, the creative communications hub from Publicis Groupe, has undergone a restructuring of their production departments at three of their New York-based creative agencies, with an aim to better cater to the needs of their clients. This restructuring also included lay-offs, according to media reports.

The reason for the restructuring and lay-offs is believed to be related to one of Publicis' most important clients, Proctor and Gamble's decision to downsize production work on its advertising campaigns, the reports claim.

A statement from Publicis Communications said, “Publicis continues to position our agency for the future and unlock smart, agile and strategic solutions. We’re being mindful about our moves in New York, which include restructuring resources to better serve clients and better deploy talent.”

According to reports, many executives, including the head of production at Publicis New York and at least one executive producer, were also laid off.

It is believed that Jenny Read, Director of Integrated Production Saatchi & Saatchi New York, will concurrently manage the teams at Publicis New York and PG One, the holding company’s dedicated P&G component.

Proctor and Gamble has clarified its position, emphasising that it has adapted more effective production processes, rather than moving more production work in-house.

Marc Pritchard, CMO, P&G has recently undertaken a number of changes to the company's marketing strategy. Reports also state that P&G plans to roll out new agency models, including a group that will handle P&G's fabric care brands by harnessing talent from Saatchi, WPP’s Grey and Omnicom’s Hearts & Science, as well as Marina Maher Communications.

According to reports, Pritchard described it as “an interactive agency that focuses first on people.” Also adding that P&G will still depend on its agency partners to handle the company's creative work.

Other reports suggest that P&G plans to slash production budgets has been a decision long in the making and that the company's goal is to streamline its global marketing spend. This most recent move is consistent with Pritchard's widely debated strategy to increase efficiency and reduce waste through better transparency from its media partners, while lowering its digital ad spends and production costs.

According to Kantar Media P&G spent nearly $2.7 billion on paid media in the U.S. last year. For more updates, be socially connected with us on
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