Lowe & Partners Worldwide, Interpublic Group's beleaguered agency network, is appealing to middle and senior management at its flagship London office to take voluntary pay cuts.
In a letter to staff earning £50,000 ($91.44k; €72.72k) and above, the shop stresses that the cuts aren't compulsory [which, anyway, would be illegal under UK employment law]. Instead, the letter refers to account losses and the company's attempts to reverse the financial impact of these.
Since the retirement of master adman Frank Lowe from the day-to-day affairs of the agency that bears his name [WAMN: 15-Sep-03], it has spun on a giddying carousel of management changes, restructuring, quasi-mergers and account losses.
In January, Lowe group ceo Tony Wright appointed Garry Lace as chief executive of the UK operation in an attempt to energize the inflow of new business. Lace has also initiated acquisition talks - as yet unresolved - with London independent creative hotshop DFGW [WAMN: 16-May-05].
Lowe concedes it has called for voluntary salary cuts. Says a spokesperson: "Lowe London is putting its finances in order. It is true that a proposition has been put forward by the agency and that proposition is that everyone that earns £50,000 or over be prepared to take a 10% cut."
Staff reactions to the invitation are unreported.
Data sourced from BrandRepublic (UK); additional content by WARC staff