Speaking in New York, chief financial officer Randall Weisenburger said that because of economic softness overseas, jobs in Europe may have to be shed. However, he declined to give specifics. He also said that the high cost of severance payments in Europe would mean that the company weighed the option carefully.
Earlier, Omnicom had provided one of the few bright spots for advertising holding companies, when it said that its profits for 2002 had risen by 9.8% to $643m (拢408m). John Wren, chief executive of Omnicom, told investors that the company is confident that the impact of war in Iraq on advertising would be brief.
He said: "While there are geopolitical concerns, it is hard to make exact predictions, but we are far more bullish about the latter part of the year and the next."
The company has had strong new business wins, especially for its media agency OMD, which has picked up new business worth around $800m from Sony, Siemens and Home Depot in the last since October last year.
Other agencies in the Omnicom Group include TBWA\, DDB Worldwide, BBDO Worldwide and the media agency PHD Worldwide.
Shares in Omnicom, listed on the New York Stock Exchange, closed yesterday at $57.35, after rising by 6.5%, or $3.35.
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