French advertising giant Publicis Groupe has reported record profits and staff bonuses while slashing its use of freelance workers by 27%, according to Campaign Live. This move could have a significant impact on freelancers working in the advertising and marketing industry
Key takeaways:
- Publicis’ strong performance has made it the world’s most valuable agency group, with a market cap of €25 billion.
- Publicis’ profit margin remained at 18%, partly due to a €124 million reduction in freelancer spending.
- Total staff costs rose, with “fixed personnel” costs increasing 6% and bonuses reaching a record €540 million.
- Freelance costs plummeted 27% to €332 million, the lowest level since 2014.
- Publicis attributed the change to its “platform organisation” and Marcel platform, which allows for better internal resource allocation and reduced reliance on freelancers.
- The company expects to continue hiring new employees, with a net addition of 1,200 planned for Q1 2024.
This shift could lead to fewer opportunities and lower income for French and British freelance workers in the advertising and marketing industry. This development could also generate increased competition between freelancers and newly hired full-time staff.
The Campaign Live report suggested that the company’s CoreAI platform will mean ‘everyone in Publicis will become a data analyst, an engineer, an intelligence partner’, which could be a handy tip for any freelancers looking to apply for freelance or fixed contract roles across the Group’s operations.
It remains to be seen how this trend will play out in the long term, but it is clear that Publicis’ decision has significant implications for the flexible freelance workforce.