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Marketers and agency fees in the firing line as Procter & Gamble wields the axe

Consumer goods giant Procter & Gamble is cutting nearly 6,000 non-manufacturing jobs with ‘overlapping’ marketers set to take more than their fair share (if fair is what it is). So far roughly 1,000 marketers have been shown the door.

And the company plans to batten down on agency costs too by running the same campaign in several countries and less ads in total, as we forecast it would back in July.

Global brand building officer (Jesus, another one) Marc Pritchard (left) says the company wants “fewer, bigger creative ideas that can travel around the world,” resulting in lower agency and production fees by eliminating some that “don’t add value.”

P&G has at times had “too many ads on air,” Pritchard says, “which has diluted the core-benefit communication of the brand.”

Which will be bad news for some (chiefly Publicis Groupe agencies headed by Saatchi & Saatchi) but good news for others, most likely Wieden+Kennedy which devised P&G’s ‘Moms’ Olympics campaign and is currently pitching for its $300m Gillette account against Omnicom’s BBDO.

P&G isn’t the only company to encounter headwinds as the world struggles to escape recession. McDonald’s also recently reported its first fall in monthly sales for nine years which will probably also mean that its marketers and main agencies DDB and Leo Burnett get a kicking.

W+K London recently picked up Nando’s chicken restaurants. Which probably wouldn’t deter McDonald’s from knocking on a certain well-known door in Portland, Oregon.

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About Stephen Foster

Stephen is a former editor of Marketing Week and London Evening Standard advertising columnist. He wrote City Republic for Brand Republic and is a partner in communications consultancy The Editorial Partnership.
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