The advertising agency Edelman Deportivo will begin consulting with the local union about closing its Stockholm office, Edelman Group has confirmed.
Edelman Deportivo has long been one of Sweden's most prominent advertising agencies. Having built a reputation on the back of a PR agency-style earned media mentality, Deportivo’s success resulted in it being bought in 2014 by the Edelman Group, joining over 6000 employees worldwide.
Their success continued for many years, both creatively and economically, with account wins and a new office opening in London last year. The agency was described by Contagious in January 2017 as the “best and the bravest on the planet” for its innovative work that pushes the boundaries of PR and marketing for brands including UNICEF, Absolut Vodka and adidas. Deportivo’s most recent campaign for iZettle
was a slick, sci-fi dystopia commenting on the future of small business.
But the agency’s financial success reversed in 2017. After 2016 saw a profit margin of 23.9%, 2017 brought a loss of -13.4%.
Yesterday Edelman shared with its Swedish employees that it would begin consulting with the local union about closing its Stockholm office. This decision follows not only the consolidation of the region’s creative capabilities in London, which started with the launch of Edelman Deportivo UK in early 2017, but also an extensive review of clients' needs and business priorities.
Deportivo’s founders Mattias Ronge, Stefan Ronge and Anders Hallen will continue to grow Edelman’s creative offer in London and beyond, working with award-winning senior creative colleagues including Indy Selvarajah from Brothers and Sisters; Esin Cittone from JWT; and creative team Oddbjorn and Thiago. Over recent months, this growing team has gone from strength to strength, with recent campaigns that have included: Asics The Blackout Track
, Nissan Navara Beach Clean
, and Lego’s Chatbot
Carol Potter, CEO, Edelman EMEA said: “Edelman Deportivo continues to set new creative standards in the region and beyond since we began our journey together when we acquired the firm just four years ago. With many of our regional and global clients now hubbed out of London and following the successful integration of Deportivo into the UK business last year, it is a natural progression that we further embed Deportivo’s capabilities for clients across our region and beyond.
“I want to express my gratitude to Lotta and the team in Sweden for their talent and commitment to delivering the best work to our clients every day. Following the consultation period, we will ensure our clients continue to be well- served in the market.”
Lotta Onajin, General Manager Edelman Deportivo Sweden said: “I think Edelman Deportivo's offer is the most relevant and innovative in the industry today, and of course I am disappointed at the difficult decision to consult with the union about closure. At the same time, I am so grateful for all the great colleagues and clients I have worked with, and my focus now is to support our team and clients through this consultation process.”