Photon’s Melbourne-based branding agency Belong is believed to have shed almost half of its workforce following a strategic management call to refocus the company and “trim the sails”.
Digital Media understands 7-10 staff were made redundant this week from across the business leaving those remaining speculating over the longevity of the company.
It is understood that parent Photon has considering merging Belong with another ATL agency for some time, but dropped the plans recently in favour of a back-to-basics approach.
Belong managing director Hugh Nairn confirmed the staff cuts, revealing that a creative team of four and the Belong inhouse barista and chef had been axed, but denied any further losses, saying that the company now had 15 staff.
Nairn also discounted speculation Belong may be merging with another ATL agency in the Photon group. Nairn said company’s future was secure as a very focused strategic branding and design agency. It is understood the company’s digital strategy and multimedia activities have been pared down as a consequence of the cuts.
Nairn claimed the reason for the staff cuts was simply a belt-tightening exercise in light of the current climate, and said no further cuts were planned.
The Belong group, an amalgamation of acquired companies Legion Interactive, an interactive mobile marketing firm, and Melbourne-based ad agency See, went through a restructure in November, with the Melbourne office retaining the Belong moniker and the Sydney office renamed as Be.Interactive. Belong clients include Westpac and Boost.
At the time of the split Be.Interactive managing director Lara Thom explained that the move suited the clients, as Sydney- based clients were focused on interactive and mobile, yet going to the Melbourne office for brand and style and feel.
It is understood the Sydney office has lost six staff since the switch, with departing employees claiming that Be.Interactive has become far less focused on the interactive elements of mobility, sticking to the security of SMS campaigns and marketing.
It is understood that one of the groups most widely experienced digital executives Daniel Segal – a seasoned music industry, venture capital and technology strategist who was the head of mobility parted ways with the company this week. Segal joined the Photon Group in May last year from Ericsson where he was the strategic marketing head of new media, working across the Belong Group of companies. Another unnamed senior executive also left Be.Interactive last week. Thom quashed speculation that any further cuts would follow and said that she was poised to announce a new executive appointment.
