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| Richard Edelman |
Edelman is cutting 240 employees, or about four percent of its workforce, to cope with the cooling down of the PR sector, according to a memo from CEO Richard Edelman.
The majority of the layoffs are senior-level staffers.
The cutbacks are a prelude to a reorganization that will restore the classic pyramid structure, which is the model of the professional services sector, as the No. 1 independent PR firm positions for growth during fiscal 2024.
Edelman noted that the shop went on a hiring binge from January 2021 to June 2022, adding 25 percent more staff to deal with unprecedented growth.
With the slowing of the economy, some regions have become top-heavy.
“Although we paused hiring over the last several months, this wasn’t enough to counterbalance the hiring we did to meet the post-pandemic surge of business,” wrote Edelman.
The departing staffers will receive severance, outplacement services and an additional six months of support through ComPsych, its employee assistance program.
“Our business continues to see growth, significant success and opportunity, but we must recalibrate today in order to continue to invest in our future,” wrote Edelman.
DJE Holdings, parent of Edelman and Zeno, launches RUTH as an independent shop named after Ruth Edelman, mental health advocate, wife and longtime business partner of Dan Edelman.
New York City PR firms make up the largest slice of O'Dwyer's 147 firm overall ranking with 33 of 40 in the New York/New Jersey area either calling Manhattan their home or having a presence there.
Subject Matter+Kivvit, which joined forces in May, has rebranded as Avoq, an integrated shop with more than 200 professionals in Washington, New York, Asbury Park (NJ), Miami and Chicago.
While PR pros stationed at in-house comms. teams and those working for agencies share many of the same objectives, they also have markedly different top priorities, according to a recent report.
Thomas Isen and Alex Yudelson, veterans of Joe Biden’s White House, have launched Second Floor Advisors strategic communications and impact engagement shop.
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