Accenture Interactive-owned Droga5 laid off 7 percent of its U.S. staff on Wednesday, about 40 people, mostly in the New York office and across all levels of the company and in all departments.
“Droga5 has made the decision to transition out a number of our people as we continue managing our business for the long term to best serve our clients," an agency spokesperson said in a statement to Ad Age’s Lindsay Rittenhouse. "All of those affected will be provided severance benefits. We are grateful for all of their contributions to the agency."
In August, a paper in Australia (founder David Droga’s country of origin) reported that Accenture would cut 25,000 workers globally, about 5 percent of its workforce, due to the pandemic. But an unnamed source told Business Insider the Droga5 cuts are due to the agency’s business, not mandated by Accenture.