DY&R cuts pay packs by 25pc to keep staff

SINGAPORE: Dentsu Young & Rubicam has imposed salary cuts as high as 25 per cent to stave off redundancies as the recession deepens. The cuts - which are understood to range between 10-25 per cent - will remain in place until year-end. The deepest salary cuts were made for management staff. Tanuj Philip, managing director of DY&R, said agencies were being forced to cut costs as the economy continues to slow down. He said DY&R was making the salary cuts to maintain profit margins, which it must deliver to appease its parent company, the publicly-listed WPP. "We want to be fit and trim and remain as profitable as we've always been. Now that we're part of a publicly-listed company we have to achieve certain profit margins. "It's no longer enough for ad agencies to remain in the black, we have to deliver double figure profit margins." But DY&R has opted to keep its head count, although it is reducing overall staffing levels through natural attrition. "I'm adverse to putting people out in the employment market in the current economic situation as it would be tough for them to get a new job at the moment." Eleven account wins this year also makes it necessary for to maintain its head count.The agency expects the new business to generate a considerable amount of work early next year.

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