Droga5 Layoffs: Cuts Across HR & Other Departments; Tencent & Mattress Firm Scale Back Work

Droga5 layoffs

New York City-based global advertising company Droga5, LLC laid off approximately 40 staff members, or five percent of its workforce, on February 23 as part of its restructuring measures. These Droga5 layoffs have affected most of the departments, including HR.

“Droga5 has made the difficult decision to reduce its workforce in New York by approximately 5% in order to reshape the business in line with current business demands,” said a company spokesperson. “We express our gratitude to the affected employees for their many contributions to Droga5.”

It’s not confirmed whether any senior-level employees have been affected by Droga5’s job cuts. Some sources have confirmed that two of Droga5’s clients, Mattress Firm, Inc. and Tencent Holdings Limited, have significantly scaled back their work with the company.

Droga5 Fired Chief Creative Officer

These Droga5 layoff news follows the recent termination of chief creative officer (CCO) Ted Royer and London Executive Creative Director Rick Dodds, but their departments have not been affected by the job cuts.


Royer was let go at the beginning of February, after being placed on leave. Before his termination, Droga5 had hired an external firm to investigate Royer, though the exact nature of the investigation was not revealed; an agency spokesperson simply cited a commitment, “to maintaining a safe and inclusive environment for all our employees.”

CEO Sarah Thompson added that Q&A sessions had taken place and encouraged employees to come forward to management or the HR department with their concerns or complaints. The company was also working on an outside means to voice concerns. Royer too didn’t respond to any messages about his exit.

At present, it’s unclear who will replace Royer as CCO. But, this was for the first time in the 12-year history that the New-York agency announced the Droga5 layoffs.



Droga5 Parts With 40 Employees in First-Ever Round of Layoffs,” AgencySpy, February 23, 2018.

Droga5 confirms New York layoffs,” The Drum, February 25 2018.

Droga5 Fires CCO Ted Royer, Citing Need for ‘a Safe and Inclusive Environment’,” Adweek, February 1, 2018.

Droga5 Has Placed CCO Ted Royer on Leave and Hired a Firm to Investigate Him,” Adweek, January 30, 2018.