By Rick Barrack, Co-Founder, CBX
Whether by accident or design, it’s happening again. Call it Groundhog Day, but we’re in that stage of the design cycle where major brand conglomerates like Keurig Dr Pepper and General Mills close down their in-house agencies. These internal teams are getting gutted either for cost, because the CMO changed, because it was doing too much, not enough, or whatever the reason of the week is. And the rest of us are left saying, “Okay, well… now what?”
We’ve spent decades reacting to this cycle, as any specialist external agency will attest. Big shop to small shop; one-stop-shop to specialist; in-house to out-of-house, and back again. Each time we pivot, we restructure, we re-message. But I don’t know if we ever actually stop to say: What’s our plan for this? What capabilities do we need in place—not just to respond, but to anticipate the next turn of the wheel?
And so, I’d say that now is the time for independent agencies to speak up as peers. If we don’t prepare ahead, then we’re just dancing monkeys waiting for the next client whiplash. Every repetition of this cycle causes us to lose important relationships and understandings, and we’re then forced to build back those connections all over again. And at a certain point, that’s not a model—it’s just chaos.
We deserve better. And honestly, brands need to grasp that we can do better—achieve better—when we’re kept in the loop.
Striking the right balance.
After all, a great brand steward is equal parts pragmatic and progressive. And if you’re contained by four walls (aka your own brand), it’s hard to find the window, let alone look through it. Complacency can happen. That’s where external agencies come in—We’re surrounded by open windows. Our work with other clients broadens our horizons and our points of reference. It’s a good thing, believe me. And our clients benefit from that sort of broader thinking.
So yes, while inside agencies offer a sense of control and cost savings (not always real), an external agency has more objectivity and more flexibility, 100% of the time.
But then the onus to show up, show off even, and demonstrate a high-touch, heightened level of commitment sits squarely on our shoulders. In short, you must show you’re as committed as in-house would be, and ever-present, to boot.
It’s not as simple as either/or. When in-house teams get downsized, we lose more than just talent.
While it might feel strange for an outside agency to defend these cuts, the reality is that in-house design teams are an essential pillar of a client relationship. They’re liaisons, brand ambassadors, and culture-builders who embed design thinking in the business and help spotlight the value of creative problem-solving. When these departments are reduced (or even dismissed entirely), the brand’s design thinking has to start over, slamming the brakes on any creative momentum in branding strategies and campaign proposals.
Let’s be clear: These downsizes aren’t based on AI “coming for creative jobs.” They’re largely a straightforward financial exercise. Businesses looking to reduce budgets see in-house departments as easy to eliminate because they also employ outside agencies. But the cuts are misguided because these teams are rarely redundant. They’re flagbearers of strategic creative thinking, and their loss is a travesty for the design industry. Not least because it takes external agencies’ progress with the client back to square one.
The deeper problem: Design’s seat at the table (or lack thereof).
While brands that cut their design teams lose crucial legacy knowledge, agencies face the tough task of re-educating leaders on the importance of design. We lose that hard-won internal advocacy and can face an uphill battle to uphold design’s value and impact on top and bottom lines.
By now we should all be able to agree that design is not disposable—so why are we allowing brands to treat it as such?
Design is one of the few functions proven to drive both growth through brand relevance and efficiency through clarity and consistency. We know that over a ten-year period, design-led companies outperform the S&P 500 by 219%—but do brands’ exec boards grasp it?
Because ultimately, the in-house/out-of-house debate masks a bigger problem: Design’s value is still not always respected in the C-suite. At agencies, CCO means Chief Creative Officer. At brands, it means Chief Communications or Client Officer—an emblem of creativity’s marginalization. It’s why design is one of the first departments to get cut, despite being critical to how consumers choose and connect with brands. The reality is that you need all three Cs in your suite; design must have a seat at the table.
Could this be the moment independent agencies take center stage?
As painful as these cuts are, they open a door for us independents to step in and reinforce the value of good design. We can carry the torch of institutional knowledge that gets lost in the churn and uphold continuity so that momentum is sustained. We can fill the gaps leftover by in-house teams by providing extra services, cementing our position as real client partners rather than mere associates.
It’s also an opportunity to rethink how we operate our own businesses. The in/out cycle can be incredibly disruptive when we build teams around those of our clients and then see entire departments wiped out. We need to stay ahead of their fluctuations by designing our agencies for greater flexibility, via modular teams and offerings that can scale and adapt.
We also need to watch for leadership shifts and cost-cutting signals as early warnings. If brands begin laying off staff, we may need to cautiously accept that design may be undervalued there. Then, it’s our role to provide continuity of brand story and strategy and advocate for creativity as business critical. Award-winning campaign ideas may need to wait when design’s very existence is on the line.
This too shall pass—but independent agencies must step up.
Fortunately, whatever stage of the cycle we jump to next, design isn’t going anywhere. Full stop.
Consumers will always need ways to discover, identify and connect with brands, so whether it’s outsourced or in-house, the strategic thinking behind that appeal remains crucial for both businesses and their customers. The sun will certainly rise tomorrow, but the industry must continue to fight for its existence, value and our rightful place at the table.
Speaking from 22-plus years of navigating these swings with some of the world’s most iconic brands, I know independent agencies can carry the torch. Design always returns because consumers demand it. And experience and continuity are what help us prove, time and again, why it matters.
