• Adweek, Thursday, September 24, 2009 11:48 PM

TBWAChiatDay has cut 15-20 positions from its New York office as the agency combines back end operations with sister unit Agency.com. The estimated 5%-7% staff reduction was achieved via layoffs and the elimination off vacant jobs, say insiders.

After three years at TBWACD, Snickers, is returning to sister shop BBDO in New York, which seems to be triggering the cutbacks. In terms of revenue, the Snickers loss is estimated at $2 million to $3 million.

Agency president Jamie Gallo characterized the move as a "retooling," as the shop seeks new digital talent for its Media Arts practice. The melding of Agency.com into TBWACD New York is seen as a way to bolster N.Y.'s digital capabilities. The downsizing also is said to be a result of Agency.com's inability to achieve critical mass in most major markets.

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