The fine art of lying low

Here’s how ad agencies are combating tight money conditions

- AKANKSHA NAGAR

IN THE LAST two years, layoffs have become firms' default response to the challenges created by advances in technology and the general economic slowdown. Over 7,500 workers were let go by 46 organisations in the first two weeks of 2024, including tech giants like Google and Amazon. The first Indian firm to announce layoffs in 2024 is the payment network Paytm, which let go of about 1,000 workers. Amazon is reducing employee counts in departments such as MGM Studios and Prime Video. Over 425,000 workers were fired by tech companies globally in 2022 and 2023, with over 36,000 of the layoffs occurring in India.

Any staff reduction of this magnitude would undoubtedly unnerve advertising agencies since these are some of the largest brands with lucrative advertising accounts. "The reality of budget cuts and constrained spending is undeniable, impacting various sectors, including ours," says Himanshu Arora, cofounder, Social Panga. The start-up landscape, in particular, was badly hit as funding dried up, resulting in a notable absence of "top of the funnel" marketing activities by many of them. Additionally, the retail sector faced challenges, especially in the first half of the last year.