BBDO Cuts 66 in Detroit

DETROIT BBDO is laying off 66 employees, or about 3.5 percent of the staff in its Troy, Mich., office, said Bill Morden, vice chairman and chief creative officer.

Employees were told of the layoffs on Wednesday and the cuts go into effect over the next few days across all departments, Morden said. The Omnicom Group agency, which is headed by chairman and CEO Mike Vogel, has about 1,900 employees.

The cuts come in response to a reduction in labor-intensive assignments from DaimlerChrysler, the office’s only client, an agency representative said. Technology and process improvements have also reduced the need for the previous number of employees, the rep added.

The Chrysler Group spent $1.15 billion on measured media for its Chrysler, Dodge and Jeep divisions in 2002, per TNS/CMR, down 5 percent from $1.22 billion in 2001.

This is the first layoff at the shop since it was formed in January 2001. “Hopefully this reduction reflects a onetime occurrence. However, if economic conditions continue as they have been for our client and ourselves, or our client’s needs change significantly, we may be forced to look at this issue again,” the rep said.