New York-based Weber Shandwick is closing its Minneapolis office amid a parent company merger, marking the end of an era for a downtown public relations powerhouse.
The physical office closure is the latest sign of downsizing for a firm that once employed hundreds in the Twin Cities but has shrunk to just a few dozen today. It’s also happening as Weber Shandwick’s owner, Interpublic, merges with fellow marketing and communications giant Omnicom — a deal on track to generate $750 million in cost savings, Omnicom CEO John Wren said during the company’s fourth-quarter earnings call Tuesday.
“Importantly, these cost savings will not impact employees dedicated to servicing our clients and generating revenues,” he said on the call. “Instead, they will arise from streamlining the holding company, middle office and regional positions, as well as from eliminating duplicative overhead, back office and third-party expenses across our larger combined global footprint.”
About 85% of revenue post-merger will come from the company’s top 10 markets, Wren said. In March, shareholders should vote to approve the deal, first announced in December.
Weber Shandwick will vacate its space in the 510 Marquette building at the end of February, according to a company spokesperson. Operations will continue with about 35 Minneapolis employees shifting to working remotely or sharing office space, said Tom Cunningham, Interpublic’s senior vice president for global communications.
“We saw an opportunity to lean in to the hybrid-work environment that we’re now in,” he said, adding the decision not to renew the lease is “not at all” related to the merger.
The closure will affect one floor at 510 Marquette, said Tom Tracy, executive director for Cushman & Wakefield, which handles leasing for the building. The lease is for four floors, but another tenant has subleased three floors for a number of years.
Weber Shandwick’s central region also includes offices in Chicago, Dallas, Detroit and St. Louis.