Ad Agencies at a Crossroads: Why Some Are Shedding Jobs While Others Are Scaling Up

While legacy holding groups cut costs and consolidate, a new generation of independent and tech-forward agencies is expanding reshaping the future of advertising talent.

The advertising industry is in the midst of a structural upheaval. While overall ad spend continues to grow, agency employment is moving in the opposite direction. Holding companies are shedding staff, driven by cost pressures, automation, and AI-driven efficiencies. At the same time, a new wave of independent and private equity-backed agencies is scaling rapidly, hiring aggressively, and redefining the agency model.

This divergence is reshaping how talent enters and moves within the industry.

The Numbers Behind the Shake-Up

As of early 2025, U.S. agency employment has slipped to 219,500, down nearly 4% year-on-year and more than 10% below levels seen at the start of 2022. The peak in April 2023, when agencies employed 228,000 people, now looks like a high-water mark before the tide turned.

This isn’t a cyclical blip. It reflects a deeper structural shift. Entry-level positions traditionally the foundation of agency apprenticeship models are disappearing. Staff-level jobs that once provid…