More than 20 jobs have gone at M&C Saatchi’s Australian operation as the creative agency attempts to right-size following a string of high-profile account departures that left a deep mark on both local and global finances.
The agency confirmed the workforce reduction this week, with CEO Dani Bassil acknowledging the human cost of the decision while declining to detail individual circumstances.
“This is never an easy outcome, particularly given the talented people who have contributed so much to our agency, our culture, and our clients’ success,” Bassil said in a statement.
“Our priority is to support those affected through this transition with care, respect, and access to appropriate assistance.”
Among the accounts lost in the lead-up to the cuts were Woolworths, CommBank, and ART – a trio of departures that stripped significant billings from the agency’s local books.
Dani Bassil
Australian losses expose global weakness
The scale of the damage became clear when M&C Saatchi published its full-year results for the period to December.
Global like-for-like net revenue fell 7.3% to $AU407.2 million, with operating profit down 26.1% to $AU49.7 million.
Australia was responsible for the lion’s share of that pain.
The local business closed the year down 31.9% – a result so severe that stripping it out would have reduced the global revenue decline to just 3.1%.
The numbers have coincided with a leadership shake-up at the top of the network. Global CEO Zaid Al-Qassab is departing after less than two years in the role.
Revolving door continues
The redundancies add another difficult chapter to what has been a turbulent period for the Australian agency.
Bassil herself only joined as local CEO in August last year, taking over from Justin Graham, who has since landed at communications agency Poem in a strategic growth advisory capacity.
Bassil said the agency’s attention was now firmly on its people and clients as it moves through the restructure.
“Our focus remains on supporting affected employees and maintaining continuity for our clients,” she said.
Main image: M+C Saatchi’s Sydney office