Leo Burnett’s Detroit office is closing on December 31, and 79 employees will be let go by the end of the year after the agency lost key accounts with General Motors. According to a WARN notice filed with the state, the office, located in Troy, Michigan, will close.
According to Crain’s Detroit, the layoffs are a direct result of GM’s recent decision to shuffle its advertising agencies, moving long-standing creative accounts for brands like Cadillac, Buick, and GMC away from Leo Burnett. This shift reflects the automaker’s broader restructuring efforts, which have also impacted other Detroit-based agencies. Interpublic’s MRM recently laid off 123 employees in nearby Birmingham, while Commonwealth/McCann cut 56 jobs in Detroit.
Publicis Groupe, which owns Leo Burnett, still retains some GM business and has a significant presence in the Detroit area. “Detroit remains an important city for us, and we will continue to invest in our capabilities and offerings there,” a spokesperson for Publicis Groupe said. However, following the Troy office closure, Leo Burnett’s only U.S. presence will be its headquarters in Chicago.
GM’s moves aren’t limited to agency partnerships. Earlier today, the automaker announced another round of job cuts, laying off approximately 1,000 employees worldwide, many at its Global Technical Center in Warren, Michigan. This follows a wave of white-collar software job cuts back in August, signaling an ongoing effort by GM to streamline operations and reduce costs.
As Detroit’s advertising community grapples with the ripple effects of GM’s shifting strategy, the closures and layoffs mark a challenging time for the industry in a city long connected to the auto giant.
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