Lay-offs to come as M&C pulls out

Singapore - M&C Saatchi will shut its Singapore advertising business to focus on strategic consulting and accountable / response-driven media.

Current M&C Saatchi Singapore clients will be phased out as the office looks to complete the transition by September.

"Opportunities for a small to medium sized mainstream agency in Singapore is likely to be challenging over the next five years, where there is low growth low margin and over competitive, to have that as the core of the business is lunacy," M&C Saatchi's CEO for APAC, Chris Jaques said.

A complete overhaul of the M&C Saatchi name and brand in Singapore is expected and the two new replacement brands are unlikely to be managed by existing management from the Singapore office. Carolyn Kan, MD for M&C Saatchi Singapore could not immediately comment on her future at the company but said she was "very proud of the team and the work done". She has been at M&C Saatchi for nine years and MD of the Singapore office for the last five years.

Jaques says the company will look to recruit staff with "focused management experience" in strategic consulting and accountable / response-driven media.

"Unfortunately, as in any strategic move, there will be layoffs and no one is happy about that but we are trying the best we can for them. We are working to ensure that as we get new business opportunities, positions and priority will be for current employees. We are trying to manage that process over the next 12 weeks," Chris Jaques CEO for APAC, said.

Strategic consulting includes services like corporate identity, luxury marketing and specialist business while accountable / response-driven media concentrates on businesses such new media, direct, digital data and mobile marketing.

M&C Saatchi shut its Bangkok office in May but Jaques says the market was a "non-priority" and the company's core strategies for the region will be to see the growth of the M&C Saatchi group.

"In Malaysia especially, we are growing very rapidly. We hope to keep the mainstream advertising side of the business as well as eventually bring the two new business sectors in," Jaques said.