GSD&M might've laid off as much as 30% of its workforce, and over 100 employees have already jumped ship in the past few months. I say "might've" because GSD&M hasn't disclosed an official number. But it's between 100 and 200.
What exactly went wrong, here? Some kind of horrible client-loss domino effect? In one year, they've lost Wal-Mart, Chili's, AT&T, and AT&T's media.
I wonder how Southwest Airlines is feeling right now...
Tuesday, November 13, 2007
GSD&M's Idea City to cut 100+
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And how about the inability to secure important new business? Dominos, US Census, Best Buy... $1 billion+ in potential billings unrealized. As if that weren't bad enough, the agency can't even secure a small account like Terminex. I can't help but wonder-- what is this dramatic downward shift attributed to?
What happened? Lack of new business has not helped, but it's important to note that we held on to those accounts for a very long time. We were walmart's first ad agency up till last year. Additionally, AT&T was *not* unhappy with us. Period. They merged, consolidated, and shifted their business to the agency that worked on the cellular business, which is where their company is headed. Smart business. Bad luck.
The other reason, in my opinion, is because GSDM sometimes understaffs in order to guarantee profit and stay very cost competitive to our clients. While I'm not a fan, that's the reality right now
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