Ketchum Sampark downsizes Indian team, retained staff to join FleishmanHillard

The wave of layoffs that were gripping various industries has now reached Ketchum Sampark, a well-known company in the Indian PR industry. The organization is laying off staff in India and China. Furthermore, in the name of damage control, they are currently merging its remaining clients and personnel with Fleishman Hillard, another agency under the Omnicom network. 

The sources reported that the layoff might impact 40 employees in India and China. However, the company ensured that the laid-off employees will receive two months' severance pay, and has also informed its clients about the transition. Rohan Srinivasan, the India MD, is expected to stay on for some time to oversee and ensure a seamless transition.

In an official statement, Ketchum's CEO, Mike Doyle, explained this move as a strategic decision to streamline operations in India and China. "As we drive the next phase of Ketchum’s growth and innovation, we made the strategic decision to streamline several operational aspects of our businesses in India and Mainland China. These changes have been made with deep respect and gratitude for the contributions of impacted local colleagues. We will continue to provide Ketchum clients with unparalleled service and global connectivity in these markets by leveraging the Omnicom network and infrastructure, and with likely investments in resources and talent in the future."

The news has shaken the Indian PR industry considering Ketchum Sampark's rich history and India’s PR Industry's double-digit growth. Founded in 1994 by Bela and NS Rajan, the agency carved a niche in financial services PR. In 2011, they made a landmark decision by merging with Ketchum, a European PR giant. However, some believe that the change started happening after the co-founders, NS Rajan, retired in 2021. He was known for building strong and lasting client relationships which is a crucial skill to thrive in the PR industry. After his retirement, some clients faced discomfort with stricter contract terms and a perceived lack of personalized attention. Moreover, some seasoned employees departed due to some unforeseen reasons that may have contributed to revenue decline, ultimately leading to the current situation. But the question remains: Is it a strategic move or a loss of personal touch?

While the future of the Ketchum Sampark stays unclear, one thing is clear that is the evolution of the Indian PR landscape. In the official statement, Ketchum Sampark has dropped some hints about potential future investments in resources and talent for the Indian market. However, despite the industry's overall growth, factors like lack of personal touch, flat fees, talent shortage, and the impact of AI will become an issue for the agencies if they fail to adapt them on time. Ketchum Sampark's integration with FleishmanHillard Ketchum can be considered a strategic step to navigate the ongoing challenges, but only time will tell if the company will be able to recapture its past glory.