R/GA’s struggles have led to another round of layoffs in the U.S., with more than 100 employees being let go earlier this week, according to three sources familiar with the matter. Two sources indicated that the cuts represent about 20% of the agency’s U.S. workforce. R/GA denied that the number is over 100.
The latest layoffs come after R/GA has gone through numerous rounds since Adweek first reported a 5% reduction of the New York workforce in June 2022. According to a source, R/GA’s revenue fell $50 million year-over-year from its high water mark in 2021 to 2022.
“It is no surprise that market conditions are making an impact on companies this year, and R/GA is no exception. As a result, R/GA is actioning a leaner, more nimble strategy moving forward,” the agency said in a statement. “On Tuesday, April 18, we undertook the difficult yet necessary step of reducing our workforce. Difficult, as we will be parting ways with some extremely talented colleagues, and friends. Moving forward, we’re committed to a more flexible model that will better support our ever-evolving industry landscape, our people, our clients and our work.”