M&C Saatchi co-founder Maurice Saatchi is among four directors to step down from the board of directors at the advertising agency following profit downgrades, an accounting issue and a falling share price.
The other directors are Michael Dobbs, Michael Peat, and Lorna Tilian.
The company last week issued a second profit warning, saying that full year global profits will be significantly below forecasts made in September due to "weaker than expected" trading and higher costs.
M&C Saatchi, founded in 1995 by Maurice and Charles Saatchi, also announced a £11.6 million hit to its books following a review by PwC into “misapplication of accounting policies”.
The company's shares have lost more than two-thirds of their value since August.
M&C Saatchi 's chairman Jeremy Sinclair: “We have accepted the decision of these directors to resign. We are determined to restore the operational performance and profitability of the business.”
The Australian arm of M&C Saatchi, which industry insiders say is having its best year in two decades, is isolated from the fallout in the UK.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.