Indiantelevision.com Team

(6 May 2009 8:45 pm)

NEW DELHI: Advertising conglomerate WPP Group is axing 7,200 jobs, which constitute about 6 per cent of its workforce, this year across UK, Europe and North America.

The cut in jobs are a result of declining marketing budgets in these markets. While the advertising giant has already made the cut, around 3,500 jobs will be axed as a result of natural wastage or redundancy. Worldwide, the group employs around 100,000 people.

Last week, founder and chief executive Sir Martin Sorrell indicated that WPP's like-for-like revenue would probably fall by around 5 per cent this year, about double of what he predicted two months ago. He further added that the firm’s UK and US markets have suffered the worst effects of the economic slowdown.

The company during the quarterly update said, “In the balance of 2009, the short-term focus will continue to be on balancing the likely fall in revenues against staff costs and headcount. The first half of 2009 will clearly be very difficult, with the second half, although continuing to be tough, likely to improve relatively.”

Meanwhile, it seems that the group’s balance sheet has not been hit in India.

While declining to comment about job cuts in India, WPP Group country manager India Ranjan Kapur said: “The group is doing reasonably well in India.”

When contacted, JWT India CEO Colvyn Harris said the agency is continuing to recruit manpower.

“While there has been no job cuts in our agency, we have always been prudent and will continue to remain so. India is going through a slowdown. While there are sectors like banking, insurance and finance which have suffered due to recession, FMCG is reporting a healthy growth. There have been no roll backs in the plans of our clients,” he added.