Edelman cuts 5% of global workforce amid restructuring
Add Axios as your preferred source to
see more of our stories on Google.
Edelman CEO Richard Edelman in 2019 in London. Photo: Daniel Leal/AFP via Getty Images
Edelman has reduced its global workforce by more than 5% — impacting about 330 employees — and will sunset several of its subsidiary boutique agencies, according to a memo obtained by Axios.
Why it matters: This is part of a broader demand across the industry for more streamlined, integrated PR support that includes corporate reputation, brand marketing and public affairs.
State of play: As part of a restructuring, several boutiques within Edelman — Edible, Revere, Salutem, Mustache, EGA and Delta — will shut down.
- The firm's financial communications boutique Edelman Smithfield, research arm DXI, and experiential marketing firm UEG will remain intact, supporting Edelman and its sister firm, Zeno Group.
- Those impacted range in seniority. "It's about evenly split between vice president and up and account executive to account supervisor," CEO Richard Edelman told Axios.
- Even with the cuts, Edelman will maintain its large footprint with no plans to close its 60 offices across the globe.
What they're saying: The corporate communications and brand marketing worlds are overlapping as businesses continue to grapple with social and geopolitical pressures, according to Edelman.
- "I've got to structure Edelman to be fast and to be, in a way, completely integrated. The two things we were trying to build in the last years are the advisory business to compete with Teneo, etc., and the marketing side of the business, to compete with ad agencies and digital firms," he said.
The big picture: Economic headwinds have impacted the agency space and many are feeling pressure to cut costs, find synergies and streamline offerings.
- The firm's revenue is down about 8% in the U.S. for the year, with Edelman saying it's been a "slower year for agencies than they'd like," pointing specifically to less cashflow coming out of the tech and health sectors.
The intrigue: Edelman is making a play for marketing dollars as it builds in-house production teams outside the U.S.
- The firm has hired over 200 creative employees in Colombia and plans to staff up in India and South Africa.
- Edelman says this allows his firm "to take money away from classic marketing agencies and compete for budgets that [they] couldn't have before."
What to watch: Edelman views AI as a way to increase efficiency and said the firm has invested "a lot of millions" in artificial intelligence, though he would not specify how much.
- Edelman also would not say whether the reduction in workforce was due to AI integration but did say that the tools have allowed employees to work faster and more efficiently.
Go deeper: Former Republican presidential candidate Nikki Haley joins Edelman
