Publicis Chemistry is bracing itself for a swathe of job cuts – including a number of senior creative and account roles – following a decision by its biggest client, EE, to rein in spending.
The agency picked up the business – estimated to be worth about £50m – in May 2012, although speculation has been mounting that its grip on the account is under threat.
But the agency stressed that “EE was Publicis Chemistry’s biggest client in 2013, and remains so in 2014”. It is understood that up to 20 jobs could be axed, however.
Bigging up Publicis Chemistry’s record on the account, the agency added: “In 2013, the agency’s work across the existing customer base, lead generation, business-to-business and retail played a major contribution in helping EE recruit 1 million 4G customers four months early, and 2 million by the end of the calendar year. Way ahead of the competition.”
The agency maintains that it always knew spend would decline this year, saying: “2013 was EE’s first full year of trading, with extremely ambitious growth targets. We always knew that our scope of work in 2014 would be lower. We are in final scope of work (SOW) discussions at the moment and no decisions about agency structure have been taken.”
Ironically, only last month Publicis Chemistry strengthened its senior EE team, hiring Havas global group director Andrew Brooks to lead the account and JWT London board account director Patrick Dent as a business director.
At the time, chief executive Mike Welsh said: “We have big ambitions for 2014, so I’m delighted to have these incredibly experienced and talented individuals who will bring energy, commitment, and, no doubt, growth and success to the agency.”
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Publicis Chemistry blow as EE cuts spend http://t.co/PMGmxzGBrA #directmarketing #advertising #data #digitalmarketing