The Marketing Reset with Melissa Smith
Image credit: Vitaly Gariev via Unsplash
The Industry Club and The Industry School caught up with industry expert Melissa Smith to discuss the ongoing trend of layoffs in the marketing and advertising industries, and what companies like The Industry Club and The Industry School can do to support those affected.
Q> So, Melissa, it has been impossible to ignore the sizable increase in redundancy levels across the Advertising and Marketing industry over the last 12 months. As a recruitment and training partner in the business, how have you witnessed this increase, and where do you see the most significant cuts happening?
Melissa> You’re absolutely right—the scale of redundancy has been hard to miss. What we’ve seen is a sharp contraction, particularly in mid-to-large-sized agencies, as clients reduce their spending. The areas hit hardest are production and creative delivery roles, where automation and cheaper self-serve tools from platforms like Google and Meta are starting to replace traditional agency support. We’re also seeing significant cuts following mergers—where networks combine, overlapping roles are often the first to go.
Q> As a business with over 30 years’ experience in the agency and in-house marketing world, how significant is this trend, and do you think it’s purely an economic anomaly, or driven by a broader shift in the way businesses are shaping their marketing delivery strategies for the long-term?
Melissa> It’s a bit of both. There are very real economic pressures right now—high borrowing costs, inflation, and cautious client budgets mean that marketing is often the first area to be trimmed. But what’s happening runs deeper than just economics. We’re in the middle of a structural shift. Businesses are demanding “cheaper and faster” delivery, leveraging AI, and questioning the need for large, expensive creative campaigns.
So, while redundancies may ease when the economy stabilises, the shape of marketing teams will continue to evolve, with leaner structures and a stronger focus on efficiency built in for the long term.
Q> Is this an ‘across-the-board’ problem, or is there a particular seniority level that is being affected the most by these layoffs? And I guess this is also having a knock-on effect for the prospects of Graduates and those looking to start a career in Advertising?
Melissa> The reality is that no level has been untouched, but we are seeing certain trends. Senior and mid-weight staff are often the most exposed, particularly where agencies are “juniorising” their teams to cut costs. Experienced talent comes at a premium, so they’re sometimes the first to go when margins are tight.
At the other end of the spectrum, graduates are entering an industry that’s in flux—opportunities are fewer, and competition is fierce. That said, junior staff who can adapt quickly to new tools and bring digital fluency are still in demand, so it’s not entirely bleak for those starting out.
Q> How is the economy affecting smaller, independent agencies compared to the global networks?
Melissa> For smaller agencies, the situation is in many ways even more precarious. They don’t have the financial cushion or global client base that the big holding groups can fall back on, so when a client pulls spend, it can be devastating. We’ve sadly already seen examples of boutique and mid-sized shops going into liquidation this month because they simply can’t absorb the hit of two or three lost accounts in a tough economy. Rising costs—everything from office space to salaries—have only added pressure.
However, it's not all bad news. Some independents are thriving by being nimble, specialising in high-demand areas like social content, influencer marketing, or purpose-driven campaigns. The difference is that they need to be laser-focused and adaptable. Those that can pivot quickly and keep overheads lean are still winning new business, but the margin for error is incredibly small right now.
Q> Of course, layoffs of this size are a double blow for those affected, as, apart from facing potential unemployment, many will be in a position of chasing down a significantly reduced number of opportunities. What would be your advice for those unfortunate enough to find themselves in this position, and what can businesses like The Industry Club and The Industry School do to help?
Melissa> It’s incredibly tough, but my biggest piece of advice is to reframe this moment as an opportunity to upskill. The industry is changing—AI tools, data-driven marketing, and short-form content are shaping the new landscape—so positioning yourself with these skills can make you far more employable. Networking also matters more than ever; staying connected through industry groups and mentorship schemes can open doors when job boards feel dry.
For our part at The Industry Club and The Industry School, we’re here to bridge that gap. Taking the time to upskill while you’re out of work can be hugely beneficial—not only does it keep your skills sharp, but it also shows potential employers that you’re proactive, adaptable, and ready to contribute from day one. Whether it’s learning to use AI tools, refreshing core creative skills, or developing new capabilities in digital and data, investing in yourself during this period can turn redundancy into a springboard.
To make that easier, The Industry School is offering two free places on all of our open workshops in 2025 for candidates who have been made redundant who can benefit from our training in their next role— contact jo@theindustryschool.co.ukfor more information.
Q> Any Final Thoughts?
Melissa> For those with solid agency experience, there has never been a better time to explore the opportunities offered by brands in-house. Especially when some of the agency budget-pulling is being driven by brands developing their in-house agency solutions. Anyone interested in learning more about the growth of in-house will find the In-House articles on our website extremely informative.
