‘A challenging week’: GroupM reorg reshapes nearly half of workforce

What’s going on at GroupM?

GroupM North America is undergoing a major restructuring that will impact between 40% and 45% of its U.S. workforce, CEO Sharb Farjami told employees during a company-wide town hall on Friday, May 9, according to a recording obtained by ADWEEK.

• The affected staff are tied to a new internal unit: Media Management and Delivery (MMD), which consolidates investment, Nexus, and campaign reporting functions.
• A company spokesperson clarified that the figure refers to organizational shifts, not confirmed layoffs. However, internal messaging indicates some employees are departing the business.

While specifics on the number of layoffs remain undisclosed, employee assistance resources have been activated, suggesting a large number of exits.

Official statements and context

CEO Sharb Farjami:

• Addressed staff in a 2 p.m. ET all-hands, acknowledging “colleagues that have left our business” and emphasizing support for those affected.
• In a memo following the meeting, Farjami reiterated that changes are aimed at creating a “more unified GroupM” and enabling better client delivery in an AI-first media environment.

A leaked memo from global CEO Brian Lesser indicated that staff reductions were part of the effort to eliminate overlap and streamline delivery.

Impact on Canadian staff

It remains unclear if the workforce reduction at GroupM will affect Canadian employees. According to Wikipedia, the company employs hundreds of people across the country.

ADDITIONAL RESOURCES
• Can I be fired after a bad performance review in Ontario?
• What Albertans need to do if they’re fired after a bad performance review
• Fired after a bad performance review in B.C.: Employee rights

Next steps for GroupM employees

If you’ve been affected by the layoffs at GroupM, understanding your legal rights is crucial.

Non-unionized employees in Canada’s media sector are entitled to severance pay based on a variety of factors, including their role, tenure, age, and ability to find similar work.

ℹ️ Want a quick overview on severance pay? Watch the video below or check out the full episode in our TV section.

Here’s what you need to know

• Compensation: Severance packages, which can be as much as 24 months’ pay, may include salary, bonuses, commissions, and other forms of compensation. Use our firm’s free Severance Pay Calculator to better understand your entitlements.
• Deadlines: You generally have up to two years from the date of your termination to review and negotiate severance offers.
• Action steps: Consult an employment lawyer at Samfiru Tumarkin LLP to ensure your severance package is fair and aligns with Canadian employment laws.

Many companies cutting jobs

GroupM isn’t the only major employer trimming its headcount as 2024 draws to a close.

Other big names, including Cargill, Vale, Windsor University, Rogers, General Motors, AMD, Visa, Meta, Nokia, and Deloitte, have also pulled out the axe.

SEE ALSO
• Salesforce to cut jobs at ‘Own’ following $2-billion acquisition
• Amazon Layoffs: Nearly 14,000 managers could be axed to cut costs
• Where are layoffs happening in Canada?
• Pocket Employment Lawyer: Real-time insights on your rights

Lost your job? Contact us

If you’re affected by the latest round of layoffs at GroupM, the experienced employment law team at Samfiru Tumarkin LLP can help.

Our lawyers in Ontario, Alberta, and British Columbia have helped tens of thousands of non-unionized individuals resolve their workplace issues.

Call us today at 1-855-821-5900 or request a consultation online.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is NOT specific to any one company and should NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.