News of the HR blunder, first reported in Wednesday's edition of Adage.com, has since made the rounds on the blogosphere and was even picked up in this morning's edition of The Wall Street Journal.

The story follows parent Aegis Group's disclosure last week that Carat's U.S. operations were being restructured due to account losses and weak new business performance.

Speculation of a new, sizeable round of layoffs began circulating last week, but a Carat spokeswoman on Friday told MediaDailyNews there was no truth to those rumors.

As part of the restructuring Carat has confirmed that it would be relocating its offices from its spacious digs at 3 Park Avenue in Manhattan to a downsized location on 42nd street. One staffer griped that the space lacks private offices for senior managers who will be forced to work in an open bullpen.

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