Droga5 Cuts 4% of Staff Amid Industry Changes: What It Means for the Agency

Overview

Droga5 has recently laid off 4% of its New York office, affecting various roles within the agency. This move comes during a global agency review by Kimberly-Clark, a significant client of Droga5.

Impacted Roles

The layoffs included positions across creative, data strategy, comms strategy, and accounts. The decision reflects the current challenges facing the agency as it navigates a shifting landscape.

Context of Layoffs

In 2019, Droga5 was appointed agency of record for Kimberly-Clark's childcare brands, including Huggies. However, reports indicate that this account, along with others, could be impacted by the ongoing global review.

Executive Departures

The agency has also seen a wave of executive departures over the past year:

• Susie Nam, former Americas CEO, left for Publicis Creative U.S.
• Dan Gonda (New York CEO) and Colleen Leddy (chief strategy co-officer) both transitioned to new roles at Quality Experience.
• Lindsay Cole, co-head of account management, joined Uncommon Creative Studio New York.

Global Leadership Changes

Despite these layoffs, Droga5 is strengthening its global leadership:

• Mark Green, co-founder of The Monkeys, was named global CEO after Accenture merged The Monkeys under the Droga5 brand.
• Pelle Sjoenell joined as worldwide chief creative officer from Activision Blizzard.
• Emma Montgomery transitioned from CEO of DDB Chicago to become global chief strategy officer at Droga5.

Recent Acquisitions and Wins

Accenture's acquisition of Brazilian agency SOKO in May added 300 employees to Droga5's São Paulo office. The agency has also secured creative accounts for Bosch, Australia Tourism, and a project for streaming service Max earlier this year.

Conclusion

Droga5 continues to adapt and evolve amidst these changes, focusing on new leadership and strategic opportunities while managing the challenges posed by client reviews and staff reductions.