Advertising Age reported IPG and Publicis Groupe—like WPP—are also cutting ties with Russian operations, a move that will affect 200 and 1200 employees, respectively, in the country. Both holding companies arranged to financially support Russian ex-workers impacted by the suspensions.
Expect IPG to take advantage of matters by readjusting their diversity figures to reflect the reduction of White comrades in Russia. Hey, that’s how enterprises “recognized for leadership in diversity and inclusion” roll. Although IPG’s decision to distance itself from Russian agencies is a tad hypocritical. After all, the holding company allowed Campbell Ewald to remain in the fold after committing acts arguably far worse than the foreign shops, most of whom simply happen to be in the wrong place at a terrible time.
Publicis Groupe made its announcement via a video starring CEO Arthur Sadoun. Thankfully, there was no comedic cameo appearance by Maurice Lévy. But Sadoun did manage to activate Marcel in the humanitarian efforts—despite the fact that Russian teammates will soon be deleted from the wondrous AI doodad. How pathetic that the contraption designed to create global connections is now disconnecting sister firms.
War is hell. So is working for White holding companies—originally built through a form of corporate colonialism—that are quick to abandon the lands they invaded.
IPG Suspends Operations In Russia
The move will affect 200 holding company employees in the country
By Brian Bonilla
Interpublic Group of Cos. has suspended its operations in Russia following the continuing invasion of Ukraine.
IPG’s decision follows those of WPP and Accenture, which closed their operations in the country earlier this month. A week later Stagwell also announced it will pause operations for its 10-person office in Russia.
In a Linkedin letter, IPG CEO Phillippe Krakowsky wrote to his staff explaining the decision. He admitted in the letter that the company has been “wrestling” with the idea of possibly “abandoning” the 200 colleagues IPG has in the country.
“When the invasion began, we immediately applied all international sanctions and informed clients in Russia who are prohibited parties that we would no longer continue working with them,” Krakowsky wrote. “Because we have never owned a media business in Russia, we did not have significant concerns that our media buying was either fueling the local economy or funding media being used by the state.”
In the letter, Krakowsky said that the holding company was initially holding off for a potential ceasefire between Ukraine and Russia.
“Essentially, we hoped that by supporting our colleagues in Russia we could live up to the part of our DNA that values and seeks to protect our people across IPG, yet also live up to the international sanctions against the Russian regime,” Krakowsky said. “Had initial ceasefire talks been productive, we could have perhaps managed to do both. But recent and escalating attacks on civilian targets, including hospitals, make it regrettably clear that the trajectory of the conflict is escalating, and the war could well go on for some time.”
Krakowsky confirmed that IPG will leave its Russian teams with enough capital on their balance sheet to pay their employees for a minimum of six months.
“We will also be engaging with them in the coming weeks as we cede control of all aspects of management and operations to the local leadership team, in order to ensure continuity for any non-Russian clients who remain active in the market.”
Among IPG’s agencies with operations in Russia are McCann, MullenLowe and FCB.
Other holding companies
Omnicom and Havas weren’t immediately available for comment. Publicis said it has no immediate updates on the matter. In a statement last week, a spokeswoman confirmed that Omnicom had 200 colleagues in Ukraine before the crisis and 2,000 employees in Russia as it was continuing to monitor the situation.
Some Publicis entities with offices in Russia include Starcom, Publicis Commerce and Zenith according to their websites. Clients listed for Publicis Commerce in Russia include Procter & Gamble, beauty brand Coty, Heineken and appliance company Electrolux. Last week Heineken stopped its operations in Russia and P&G reduced the scale of its operations in the country.
A few Omnicom agencies that have a presence in Russia include TBWA, DDB and OMD, according to their websites. In terms of Ukraine, Krakowsky wrote that the company is supporting its employees in the country as it can and is “working on the logistics” required for refugees to access housing and medical services.
“Across IPG, our company has already donated hundreds of thousands of dollars to humanitarian organizations focused on addressing the crisis,” Krakowsky said. “Some of our agencies are providing direct monetary support to our affiliates in Ukraine, as well as assistance with IT and other operational needs. For the month of March, IPG is also matching individual gifts from IPG employees to organizations providing assistance to Ukrainians impacted by the war.”
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Publicis Suspends Operations In Russia
The move will affect 1,200 Publicis employees in the country
By Brian Bonilla
Publicis is the latest holding company to suspend its operations, engagement and investment in Russia due to the ongoing invasion of Ukraine.
In a video shared with Publicis employees today, CEO Arthur Sadoun confirmed the decision and said the holding company will be handing over control of its Russian operations to Sergey Koptev, founding chairman of Publicis in Russia, with the “clear contractual condition of securing a future” for employees there.
“Since the start of the invasion, we have been working on exiting Russia as we strongly condemn the unilateral aggression against Ukraine,” Sadoun said in a statement. “We were committed to taking strong actions that fully respond to the gravity of the situation. But we were determined to take the necessary time to come up with a solution that was truly people-first, because our 1,200 employees in Russia are our people too. We couldn’t just abandon them. By ceding control of our Russian operations to Sergey, we are securing a future path for our colleagues while immediately stopping all of our operations, engagement and investment in Russia.”
Publicis declined to comment beyond its press release and video.
Some Publicis entities with offices in Russia include Starcom, Publicis Commerce and Zenith, according to their websites. Clients listed for Publicis Commerce in Russia include Procter & Gamble, beauty brand Coty, Heineken and appliance company Electrolux. Last week, Heineken halted its operations in Russia and P&G reduced the scale of its operations in the country.
In the video, Sadoun “condemned” the war and addressed what the holding company is doing to support its 350 Ukraine employees, beyond its salary guarantee for the rest of the year.
“When it comes to Ukraine, of course, the safety of our teams remains our No. 1 priority as violence on civilians increases and the humanitarian crisis deepens, we are doing everything we can to protect them,” Sadoun said in the video. “We are in daily contact with all the 350 of them [Ukraine employees] on an individual basis. We are bringing them the security, relocation, and financial support they need in this incredibly difficult time. We are helping everyone who has to leave their home, supporting them with visa and paperwork. Thanks to Marcel and volunteers from the group in neighboring countries we are welcoming our people across the border and providing guidance, transport, and accommodations.” The holding company is also matching donations for a Ukraine fundraiser which was set up through Marcel.
The news comes a day after IPG also paused its operations in Russia, affecting its 200 employees in the country. WPP and Accenture were ahead of the pack, announcing the suspension of their business in the country earlier this month. A week later Stagwell also announced it will pause operations for its 10-person office in Russia.
Omnicom wasn’t immediately available for comment. Havas provided the following comment:
“We are all deeply concerned by the situation in Ukraine. The devastating violence has shocked us profoundly and our thoughts are with everyone affected by this conflict. Havas is present in Ukraine—we have 250 people working in three agencies. We are very concerned for their welfare. Our absolute priority since the beginning of the war has been to do everything we can to provide financial and logistical support to our teams there. We have been struck by the great outpouring of solidarity within our Group: our teams in Poland, the Czech Republic, Hungary and the Baltics have been assisting those able to cross the border from Ukraine by providing transport, provisions and even welcoming them into their homes. We are following the situation very closely. We don’t operate directly in Russia but have a local partner that serves our global clients. We have committed to freezing all new investments in the country until a peaceful resolution can be reached.”
Dentsu also provided a comment on their business in Russia.
“The health and safety of our employees continue to be our top priority and we are providing additional support to our people in need,” the company wrote in a statement. “We are reviewing all relationships with Russian companies to ensure we are fully compliant with international sanctions. We will continue to rigorously minimize any impact on our clients’ activities as well as Dentsu operations. In regard to global businesses closing their Russian operations, we operate a joint venture in Russia and we are closely reviewing this situation to better guide our clients and also make informed decisions for our business, our people, and communities as a whole.”
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