Dentsu's CXM agency Merkle has cut 50 roles, industry insiders say.
The news comes after Dentsu shed 50 roles in April, which saw Merkle chief executive Steve Yurisich among others exit, adding to slow redundancies from late last year.
Merkle's new boss, Merkle ANZ practice president Kim Douglas, was appointed in July and reports into CEO product and practices Kirsty Muddle.
Douglas would not confirm the number of cuts but cited that today’s economic climate is seeing clients prioritising short-term ROI, causing spend to be delayed or reduced in size.
"This has meant we’ve needed to review the shape of our business to ensure we’re mobilising the right capability as we respond to these market forces, with a focus on reducing duplication as a result of our acquisition-led growth strategy," Douglas said.
"This has meant some roles have been impacted. It’s never nice to have to make these decisions, but we must be positioned to deliver what clients are looking for today and into the future.
“There is a huge opportunity on the horizon for experience led transformation businesses powered by data and tech across the B2B and B2C sector with investment predicted to increase as the economy stabilises and disruption drives innovation.
"Our focus remains unchanged, ensuring we continue to build a strong and fierce reputation as an experience-led transformation business across ANZ for our clients, partners and our people.”
Last week, AdNews reported that the Japanese-owned holding group is moving to a single P & L structure and lifting its local reputation.
Dentsu lifted its revenue nose just above the growth black line with a 0.2% organic revenue growth in the June quarter, reporting a higher client pitch win rate.
The result is an improvement on the 3.7% fall posted for the March quarter, dragged down by an underperforming international business.
Dentsu reported global organic growth in the December quarter at -6.6% and the full year -4.9%.
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