Dentsu Aegis Network (DAN), the Japanese giant’s business outside its homeland including Carat, 360i and Merkle, has announced that it’s cutting all 45,000 or so salaries by ten per cent, more for senior managers.
DAN says: “As a result of COVID-19 business impacts, we are activating a set of cost saving measures across the company to ensure business continuity and to safeguard our people’s livelihoods around the world. We consider our people to be our greatest strength and are doing everything we can to ensure we have a healthy and sustainable business for them and our clients, after this crisis passes.”
Interpublic’s MullenLowe agency has already announced a ten per cent pay cut. Like some other holding companies including Publicis, IPG seems content to leave such cuts to network bosses (country managers in Publicis’ case) although that may not continue as the effects of the crisis become more apparent.
Taking a ten per cent cut and keeping your job looks a pretty good deal. Sadly, there will almost certainly be heavy job cuts at DAN (and elsewhere) too.