Two networks have decided to cut back their operations as the economic downturn deepens.
Leo Burnett USA’s Giant Step unit is laying off fifty-two employees, around 23% of its total workforce, citing “the current economic climate” and the need to ensure “continued success and profitability”.
Most of the job cuts will be at the agency’s Chicago office, with others in New York. The move follows Burnett’s axing of over two thousand staff in preparation for holding company Bcom3 Group’s recently shelved IPO [WAMN: 08-Feb-01; 29-Mar-01].
Meanwhile, New York-headquartered Rapp Collins Worldwide, part of the Omnicom Group, is to close its Minneapolis office. Accounts will be transferred to the Chicago unit, while “more than five” of the 27 staff at Minneapolis (all drawn from senior management) will also be given the opportunity to move to the Windy City. The network attributed the move to a need to improve efficiency.
News source: New York Times