US DMA cuts jobs again, citing "economic pressures"

LONDON - Proof of how the recession is hitting the US direct marketing industry comes with news that the US Direct Marketing Association is to make a second round of job cuts, hard on the heels of redundancies it made in October.

The Chicago-based association, which represents the $170bn-plus US direct marketing industry, is laying off 26 employees, a move the organization said was prompted by "economic pressures".

It is also planning to rationalize its events calendar, through cancellations or merging conferences and seminars. The job losses have occurred in the association's research and education units.

The move comes as New York-based Reader's Digest Association, one of the pioneers of direct mail marketing, said it was examining restructuring options including bankruptcy, as it struggles against a weakening ad market.

DMA president and CEO John Greco wrote to members explaining that the cuts would help the DMA survive the recession.

"We are anticipating where the economic pressures will continue to affect us, and restructuring accordingly to ensure that DMA comes out stronger and smarter in serving the needs of the direct marketing community, and enhancing the direct marketing process-which continues to drive nearly ten percent of US gross domestic product," he wrote.

Flagship events such as DMA '09, DMDays, the Non-Profit Federation Conferences and the Email Evolution Conference, as well as events done in partnership with other associations such as ACCM, NCOF and NCDM will continue as scheduled. All other existing events will be cancelled or included within larger events.

In October the US DMA, which was founded in 1917 and has more than 3,400 corporate members, laid off nearly 24 people including senior directors.

Greco's letter explains why education and research have borne the brunt of the job cuts. "In education and professional skills development we will do more for our members with fewer resources by using the latest ‘e-platforms' to quickly deliver the latest best practices, current information on what's working (and what's not) in direct marketing, and how everyone can leverage their resources for the best ROI," Greco wrote.

In October's cuts, the marketing and conferences departments took the redundancy hits.

The UK DMA is currently putting together its 2009/2010 budget and would not comment on its staffing levels. "The economic outlook is having an impact on the DM industry and we're reviewing what we should do to meet the needs of membership in these pressurised and fast-moving economic times," said David Metcalfe, DMA chairman.

 

 

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