In a move that underscores its commitment to cost efficiency, the new GroupM agency formed by MEC and Maxus will remove existing regional management structures. MEC global CEO Tim Castree, who is heading up the new company, confirmed the news to Campaign after unveiling its new global structure internally to employees. In practical terms, it means that NewCo will not be run at the APAC, EMEA or LATAM levels. Instead, the firm’s top eight global markets that compromise 70 percent of its revenues will report directly to Castree. In Asia-Pacific, that means key markets like China, Australia and India will all report directly to New York. (Canada, Germany, Italy, UK and the US are the others). Remaining markets will be organized into sub-hubs, like Southeast Asia, but will be led by an existing country market leader in that region to avoid overhead management costs. “We absolutely want to reorient the business as such that we eliminate the idea of overhead roles versus revenue roles. I hate this idea of overhead,” Castree said. “We’re retooling the way we think about the business where it’s really about clients and markets. That’s the job. It’s not about people like me.”
Read more at Campaign Asia.