It is not a secret anymore than our economy is in trouble, having moved from a rapid growth to a state of crisis. At a time when even Microsoft, Sony, Citi Bank and all multi-nationals are cutting jobs, Pakistan advertising industry is also shutting all possible cost which may hurt the flow of companies. As I have discussed earlier that our industry needs a bail out plan to surge again and continue expanding in every sphere of business. Big advertising agencies in the country first down-sized in November/December 2008 and now after 3 months, at least 3 companies have fired more workers to adjust their shrinking profit and business.
Interflow that had good business in Musharraf era have now fired 20 workers from all departments and their work force strength is now standing under 60 now. Marketing and design department were worst hit of this job cut in Interflow.
Adgroup which was the favourite advertising company during the last 10 years with the patronage of the Anwar Mehmood also bore the brunt and fired 14 workers. Although, Adgroup is still the most favourite company of the Government Sector but the overall business slow down is hitting the company financially. Reportedly, at least 2 to 4 persons were fired from creative and art department. It merits mentioning here that this company has the biggest creative department with 3 creative directors, 4 managers and 3 copy writers.
Midas has also fired 7 of its employees. Although they have good running business but recoveries remain the big issue for Midas. You can imagine the cash crisis from the fact that even a C class agency like Adcom has more than Rs. 7 crore to recover. While Midas has dues of over Rs. 50 crore in the public sector specially the government of Punjab.
MPL stood secured due to new SIM activation project granted to it. Another deal has been done by the Manhell advertising by getting the ownership rights of NT in Karachi. This is also a big group with the backing of VIP marketing the tycoon of Pakistan property builders and among the big 5 property developers.
One thing which I would like to share with you is the fact that these people who have been fired by the companies should not be deprived of their bread and butter. These people were working day and night for these companies regardless of duty hours.
When they were ready to work all the time, now they should be compensated with their jobs. One thing we must keep in our mind that if a multi-national company fired any worker in The US or UK, they have to pay many types of bonus, arrears and allowances along with the termination letter. Unfortunately, in Pakistan, no one has the right to claim such benefits. It is worth mentioning here that these type of bonuses only cost companies a meagre amount of income.