Days after Omnicom closed its acquisition of Interpublic Group, U.S. employees returned from Thanksgiving break to a harsh reality: thousands of layoffs, dissolved agencies, and a new benefits package that workers describe as “the worst [they’ve] ever had.”
Employee handbooks and benefits documents obtained by ADWEEK show the new Omnicom’s policies are a significant downgrade from IPG’s legacy package in the U.S.
Those coming from IPG will lose a number of paid vacation days while trading in for reduced parental leave and holiday time, new severance limits, health plans that can result in higher costs, and a return-to-office requirement that affects raises and severance eligibility.
As one former IPG business manager told ADWEEK, “It’s the worst benefits package I’ve ever seen in my life.”
Three legacy IPG employees spoke with ADWEEK on the condition of anonymity about how insiders are reacting to the new benefits package.
Omnicom declined to comment on the changes to employee benefits.
Goodbye, guaranteed 401(k) match
Among all the benefits outlined in Omnicom’s materials, workers say the 401(k) overhaul is the most shocking.
Under IPG’s former plan, employees received a 50% match on up to 6% of their contributions, vesting over three years and hitting every pay period, plan documents show. It’s a system several workers described as predictable and “trustworthy.”
Omnicom’s plan, however, includes a fully discretionary match of up to 50% on just 5% of contributions, paid once a year and only for employees still on payroll on December 31.
“The fact that it’s discretionary is disgusting and feels weird,” the IPG business manager said. “It’s decided at the end of the year if you actually get it or not.”
