GM R*Works Headed for Extinction?
While the mainstream media focuses on the effects of Detroit’s downsizing (a.k.a. spectacular tumble into the abyss) on blue collar jobs, let it not be forgotten that tens of thousands of non-union white collar workers are already looking at a bleak Christmas season, with tens of thousands more realizing that this will be their last holiday period in their current employment. To wit: a TTAC reader tells us that GM R*Works is busy escorting workers to the door, after already shrinking from two dozen employees to ten. And no wonder… R*Works is a promotions company with one client: “Our vision: Use the power of promotion to provide General Motors with dynamic, unparalleled marketing initiatives that set the world’s number one automaker apart from its competitors. Secure GM R*Works position as our Client’s most valuable agency partner with ideas that enable GM to maintain its leadership role and grow market share.” Our reader reports that GM’s ’09 promotions budget have been slashed to levels insufficient to stage any major events. “Rumor now is that the entire company goes bye-bye by end of the month (which is not far off, obviously).” [thanks to you-know-who-you-are]
More by Robert Farago
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I can't imagine anyone employed by GM would be surprised by getting laid off. When I worked at a telecom company during the layoffs of 2000-2002, most people kept clean and orderly cubes to facilitate a more rapid departure should the hammer fall that week. Wouldn't pretty much every GM employee have had time to seriously contemplate a career Plan B by now?
As a meeska mooska marketeer myself, I can attest that the "internal agency" model that big companies all wanted their marketing departments to adopt a few years ago is a great way not to do things. Why pay an outside company to alternately kiss your ass and ignore your phone calls, when you can re-create that sensation in house at the same price, plus headcount? "Secure GM R*Works position as our Client’s most valuable agency partner..." As if they have a choice?
I don't know that this company is under the GM umbrella. Structure: GM R*Works is owned by the Interpublic Group of Companies (IPG), one of the world’s largest and most respected holding companies in the advertising / communications field, currently includes more than 50 companies employing 46,000 people in over 130 countries. Not sure what that means. Of course the website is old so maybe GM bought them but no one told the web administrator to update things. Look at this gem: Today, GM R*Works uses its planning power to provide GM with outstanding advertising and promotional impact. With over 350 employees and offices in six major U.S. cities, GM R*Works is able to oversee local and regional activity as well as national initiatives to help GM reach its target audiences at all levels. 350 I don't think so. Hate to see people lose their jobs but these guys weren't doing a good job. What increases and value have they added to the company. Increased losses? Good riddance, IPG is our company name and we do great work, architecture not marketing.
The Atlanta office (one of the six major US cities) is already closed as of today, all employees let go.