IPG + Michael Roth Lower Expectations; Say Bye-Bye To Your Assistant

December 3, 2007

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Interpublic Group CEO Michael Roth said that the company’s profit margin goal for 2008 is being revised to between 8.5 percent and 9 percent down from previous double digit estimates. AdWeek has Roth saying that both agency network Lowe and media agencies Initiative and Universal McCann are expected to be fully profitable in 2008.

Also worth noting is that personnel costs are atop Roth’s to-do list. IPG’s 43,000 employees account for about 62 percent of the company’s total costs. Roth denied layoffs and instead focused on, “being more efficient”, but doesn’t that sound like double speak? He did say that “a key focus will be on the head count of “non-revenue supporting roles.” Now might be a good time to ask your assistant where he gets those amazing lattes from, because when that “non-revenue supporting” axe swings…

Read more here.

Posted by superspy
Filed in Agencies, By Blogger - Super Spy
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3 Responses to “IPG + Michael Roth Lower Expectations; Say Bye-Bye To Your Assistant”

  1. George Parker Says:

    December 4, 2007 at 5:07 am

    Hey Sexy Baby…
    It’s layoff time at IPG… Read all about it on AdScam. Michael Roth is a douchenozzle extraordinaire. But he’ll keep pulling the millions down ’til Laurence goes to the slammer for his naughty priest stuff, and Howard gets his final face, body and fucking brain do-over.
    You can’t make this shit up.
    Cheers/George

    Reply
  2. LAM Says:

    December 5, 2007 at 4:21 pm

    Ditto to what George said. Perhaps Michael should be looking at his own “overhead” and making some cuts there….Let’s start making those “non-revenue producing” cuts on the Interpublic Group level….the business units – with the exception of the top management at Draft/FCB and they’re equally useless – are doing their best to stay the course…it’s the wide load at IPG that’s helping to bring their overall results down…For great fun and amusement one should go into their financial filings (10K’s and 8K’s, etc.) and look at the kind of contracts all the non-revenue producing-types at IPG enjoy…it’s mind boggling and gives one pause…They’re bringing in annual sums such as $l.6 million (and that’s not Roth – he makes much, much more than that)and for WHAT exactly??

    Reply

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