FCB and Ogilvy HK chop head count

<p>The worsening global economic slump is forcing regional media </p><p>owners and agencies, including FCB and Ogilvy & Mather, to take painful </p><p>cost-cutting actions, such as redundancies. </p><p><BR><BR> </p><p>The situation was exacerbated by the September 11 terrorist attacks on </p><p>New York and Washington, raising fears that a recession is now </p><p>unavoidable. </p><p><BR><BR> </p><p>FCB Hong Kong has made 20 positions or about 10 per cent of its </p><p>workforce redundant, citing the deteriorating economy. Its problems were </p><p>aggravated by the loss of Standard Chartered Bank in a global </p><p>realignment to J. Walter Thompson. </p><p><BR><BR> </p><p>However, FCB Greater China chairman and chief executive officer, Gary </p><p>Tse, said: "Most of the cuts were made in administrative and support </p><p>functions. The advertising functions remain as strong as ever." He said </p><p>FCB was "slimming down to prepare for what could be a tougher next </p><p>year". </p><p><BR><BR> </p><p>O&M cut nine positions, mainly in its creative department, from its Hong </p><p>Kong office, which employs about 250 people. Its Greater China group </p><p>managing director Joe Wang agreed there was a need to prepare for the </p><p>worse. "We're restructuring the creative department to give us more </p><p>strength. Most of those let go were juniors but we will fill some of the </p><p>vacancies with more experienced people." </p><p><BR><BR> </p><p>MTV Asia, meanwhile, has retrenched 16 people from Singapore following a </p><p>merger of its regional and Southeast Asia teams. However, it claimed the </p><p>overall headcount had risen because of recruitment in other markets. </p><p><BR><BR> </p><p>With the gloomy sentiment prevailing, agencies and media owners are </p><p>planning their 2002 budgets with caution. BBH regional CEO Chris Harris </p><p>said that there were very few account moves in Singapore in recent </p><p>weeks. "This could be because of drastic cuts in budgets so there isn't </p><p>much to move." </p><p><BR><BR> </p><p>- Additional reporting by Leithen Francis. </p><p><BR><BR> </p>