S4 Capital’s has been cutting staff at the Australian operations of Media.Monks, the digital pure-play advertising group's content, data, and media division.
The company has shaved its global headcount by 13% to 7,707 and is continuing to manage costs tightly, given an “uncertain” market outlook.
In Australia, insiders report a raft of redundancies, with local staffing now below the 200 mark.
“Since this time last year the Aussie part of Media.Monks has lost so many people,” one staffer told AdNews.
Holding groups locally have been shedding staff in response to tighter marketing budgets, especially in the technology sector.
The S4 Capital posted its first negative growth year, with technology companies pulling back on advertising spend. In the year to December, net revenue was down 4.5% like-for-like to £873.2 million.
In Australia, S4 Capital confirmed “role eliminations” to pursue a "stronger and more stable future".
The company is trying to fill some vacancies with existing resources and capacity, which has resulted in role changes.
“While we see this as proper hygiene for a company of our size, we recognise that reductions are never easy for anyone and we extend our gratitude to those who have left," the spokesman said.
The spokesman said the industry is facing vast amounts of change, leading to a shift in the skillsets clients need.
“We are a client-focused organisation, and as clients' needs shift, we have to respond by re-prioritising our own offerings and services,” the spokesman said.
“This has led to a reduction in headcount in the past year, but as we shape our current mix of skillsets to match the demands of clients, we also have many open roles across the organisation.
“We plan on adding talent to the offerings and services that match client demand and support the growth of our client’s businesses in AUNZ and the wider APAC region.
“Reflecting the market backdrop, we continue to maintain a disciplined approach to cost management, which has included a moderate staff reduction in several pockets of our organisation.”
Sir Martin Sorrell, founder and executive chairman of S4Capital, in announcing full year results, described 2023 as “difficult” and reflecting challenging global macroeconomic conditions, fears of recession and high interest rates.
S4 Capital sees growth in 2024 likely to be weighted to the second half, aided by lower interest rates and the impact of artificial intelligence initiatives.
The local spokesman said changes were to safeguard for the future.
“Over the past year especially, given the economic landscape, we have continued to closely plan and evaluate the short-term, mid-term and long-term capability of our systems, processes and teams,” the spokesman said.
“This has included a review of operating models and costs associated with our people, as well as software, suppliers, travel, facilities and more.
“Beyond that, role evaluation is an ongoing practice for our company to ensure our operations are aligned and to pursue better efficiency and ways of working.”
Most global advertising groups have reported a difficult year with clients in the technology sector. Dentsu posted 2023 growth at -4.9%, WPP a "resilient" 0.9%, IPG 1.7%, Omnicom 4.4% and Publicis Groupe 6.3%.
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