Frankel terminated 100 jobs last week as part of an expected reorganization (Jan. 15 XTRA!) “aimed at flattening, centralizing, and reshaping the agency into a more client-centric, leaner, and efficient organization,” according to a release.
The top-to-bottom restructuring – which includes the departure of president Dan Rose – eliminates layers of both management and low-level administration by uniting once-separate client teams into two larger groups that can share resources. The change also “frees up more senior people to work on accounts” rather than focusing on managerial obligations, says ceo Jim Mack.
The account groups will be headed up by two senior vps: Kathy Hartman will oversee work for the U.S. Postal Service, McDonald’s, and the Centers for Disease Control, while Eric Rosenthal manages United Airlines, Visa, AT&T Wireless, and Tropicana. (Last week’s XTRA! incorrectly reported that Frankel had lost the Tropicana account along with Frito-Lay.)
Elsewhere, exec vp Pam Church takes on a new role as head of an Insights and Ideas group that will work on all accounts; Frankel vet Bill Rosen returns after a two-year hiatus to become chief creative officer (replacing Brian Robinson, who retired last fall); and cfo Jim Farmer adds chief operating office duties (from Rose). Exec vp Dick Thomas remains in charge of new business development and Ray Damiano continues as head of the Irvine, CA, office.
Mack calls the changes “the realities of the business. We needed to streamline our operations to better meet client needs.”
Chicago-based Frankel cut about 75 positions in 2001 through two rounds of layoffs. In addition, more than 100 former staffers were transferred when parent company Publicis spun out the shop’s Siren and BrandGuard technology units into a separate operation called MarketForward. Total headcount, which peaked at about 740 in late 2000, now stands at 400.
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