Accenture-owned ad agency Droga5 has laid off 7% of its staff, or about 40 people, at its New York headquarters according to an agency spokesperson.
Two people with knowledge of the matter told Business Insider that the cuts will span employees at all levels in all departments as well as staff working in production.
“Droga5 has made the decision to transition out a number of our people as we continue managing our business for the long term to best serve our clients,” the spokesman said. “All of those affected will be provided severance benefits. We are grateful for all of their contributions to the agency.”
The news comes following last week’s reports that Droga5 parent company Accenture will cut 25,000, or 5%, of its global workforce due to a slowdown during the pandemic.
A third source cited in the Business Insider report said the Droga5 layoffs were because of the agency’s business and not related to the financial performance of Accenture.
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