Advertising agency R/GA is shutting down its existing offices in New York and San Francisco as part of its ongoing restructuring efforts.
Global marketing and innovation agency R/GA is set to vacate its current office spaces in both Hudson Yards, New York City and downtown San Francisco as part of a wider restructuring under CEO Sean Lyons.
According to multiple sources, confirmed to Adweek, Lyons communicated this decision through an email sent Tuesday night.
As part of the reconfiguration, R/GA is abandoning its city-based model in the United States, and instead adopting a country model that leverages five key disciplines to run the business. The emphasis on geographical locations is diminishing, according to an email obtained by Adweek, leading R/GA to forgo its leases in New York and San Francisco with the help of parent company IPG.
In industry circles, such transitions are often driven by a range of factors, including:
- Reducing real estate expenses in pricey markets like New York City and San Francisco.
- Embracing hybrid or remote work arrangements as a result of the pandemic.
- Enhancing cross-department collaboration under a unified country model.
- Streamlining operations to improve efficiency and meet evolving client demands.
While Lyons has been associated with transformation at R/GA, specific reasons for this transition remain undisclosed in the current sources. Refer to R/GA's official press releases or statement from the company for the most accurate clarification.
- The decision made by R/GA's CEO, Sean Lyons, to abandon the city-based model in the United States and adopt a country model could potentially help reduce real estate expenses in costly markets like New York City and San Francisco, a move influenced by the widespread trend towards remote work facilitated by advancements in technology.
- As part of the reconfiguration at R/GA, the agency is focusing on efficiency improvements, streamlining operations, and adopting a more unified country model that might incorporate technology to enhance cross-department collaboration and meet evolving client demands, which are key aspects of modern business and finance transformations.
