(Direct Newsline)—The New York office of direct marketing agency Draftfcb earlier this week laid off 47 employees, or about 2% of its staff.
Laurence Boschetto, Draftfcb’s worldwide president and chief operations officer, said the staff reductions were the result of “shifts” in client spending.
“As a responsible business, we have had to adjust accordingly,” he added.
He said the agency has not lost a client in over a year, and that the New York office still employs 1,100 people. Draftfcb employs 2.300 people nationwide.
The cuts were across the board and no further layoffs are planned, according to a source.
While it may be tempting to link the layoffs to a slowing U.S. economy, the link doesn’t necessarily exist.
Total spending on advertising and marketing in the U.S. will reach $412.4 billion by the end of 2008, an increase of 3.9% or $15.5 billion over 2007, according to a forecast from consultancy Outsell, Inc. However, the forecast reflects slowed growth in comparison to 2006-2007, during which total spending rose 5.8%
Draftfcb’s New York office’s clients include Kraft, Gerber, UnitedHealth Group, Jamaica Tourism, US Census, HP, Motorola, Citi, Merrill, Trane, Merck, Fisher-Price, Lilly, Hampton Inn, MetLife, Wyeth and Roche.
Network
