• by Mark Walsh  @markfwal, December 11, 2008

Digitas, the digital unit of Publicis Groupe, is laying off 2% of its approximately 2,100 employees in the U.S., the company confirmed Thursday.

The agency cited the recession's impact on client budgets in making the cuts. "In response to changing client needs, we have taken the difficult step of restructuring staffing levels at some of our U.S. offices," according to a statement. "We have redeployed talent wherever possible, but the realities of the current economy did require that we let some talented people go in order to best position the agency for continued growth and success."

Digitas has offices in New York, Atlanta, Boston, Chicago, Detroit and Norwalk, Conn.

A Digitas spokesperson said the agency's 900 employees outside the U.S. would not be affected by the cutbacks. Acquired by Publicis in 2006 for $1.3 billion, the digital unit has been expanding its network internationally--most recently through Publicis' acquisition of Sao Paulo, Brazil-based Tribal in November.

Key Digitas clients included American Express and General Motors, one of the three major U.S. automakers seeking a $14 billion in emergency short-term loans from Congress. However, GM is the only one of the top 10 automakers that has not cut ad spending during the first nine months of the year, according to TNS.

Earlier this week, both WPP's GroupM and Publicis' ZenithOptimedia Group predicted that the global advertising economy will contract next year for the first time since the industry's last recession in 2001. Internet ad growth is expected to slow, but GroupM predicts it will still grow by 10% in 2009, while ZenithOptimedia optimistically forecasts 18% expansion next year.