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.
