Digitas Thursday said it would cut 50 positions from its workforce in an effort to recoup $6 million in compensation and benefits savings. In a related move, the company announced fee revenue guidance
for the third quarter of 2004, raised its third quarter earnings per share expectations, and clarified its expectations for the full year of 2004, taking into consideration full-year expectations for
the AT&T and Delta Air Lines accounts. Specifically, Digitas cited an expected decline in AT&T revenue--stemming from AT&T's announcement last month that it would stop seeking new customers for its
consumer local and long-distance services--and an expected decline in Delta Air Lines revenue--stemming from that company's recent announcements regarding its financial situation--as the basis for
issuing the clarified guidance.
