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

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