Droga5 has confirmed the agency has shed 5% of its New York office, approximately 40 members of staff.
In a statement issued to The Drum, the agency claimed the layoffs were “in order to reshape the business in line with current business demands”.
According to reports, the cuts span a number of agency departments - including HR - with suggestions two clients - Tencent and Mattress Firm - have both significantly scaled back their work with the agency.
Describing the decision as “difficult”, the statement from Droga5 “expressed gratitude” to the affected members of staff for their “many contributions to Droga5.”
At the beginning of the month, Droga5 chief creative officer, Ted Royer, was dismissed from his role after being placed on leave.
At the time Droga5 issued a statement affirming it was “committed to maintaining a safe and inclusive environment for all our employees.”