- Andrew McMains

NEW YORK TBWA\Chiat\Day has cut 15-20 positions from its New York office as the agency combines back end operations with sister unit Agency.com and prepares for the loss of key Mars brand Snickers, sources said.

Mars this week said it was shifting regional assignments on brands such as Snickers, Whiskas and Dove so that each has a single agency in major markets. As part of that shift, Snickers, which last year spent nearly $28 million in major measured media, is returning to Omnicom Group's BBDO in New York after three years at sister shop TBWA\C\D. The move takes effect in January.

In terms of revenue, the Snickers loss is estimated at $2-3 million.

TBWA\C\D here retains creative duties on other Mars brands, including Skittles and Starburst.

The estimated 5-7 percent staff reduction occurred during the past two weeks and was achieved via layoffs and the closing out of vacant jobs, according to sources.

Agency president Jamie Gallo (pictured) characterized the move as a "retooling" as the shop seeks new talent for its Media Arts practice. Some new clients need help digitally and as a result, "we've reengineered this business on the fly," Gallo said.

As such, the melding of Agency.com into TBWA\C\D New York is seen as a means for bolstering N.Y.'s digital capabilities. TBWA's London office made a similar move earlier last year.

The move also recognizes Agency.com's inability to achieve critical mass in major markets, said a source. One exception is San Francisco, where Agency.com maintains its own operation with clients such as Nike, eBay, Del Monte and Ask.

Other TBWA\C\D N.Y. clients include Absolut, Michelin, Beirsdorf and Dial soap. Besides Agency.com, the N.Y office includes subsidiaries Tequila and TBWA\WorldHealth. Prior to the cut, those units employed about 275 staffers.