Ingalls Posts Layoffs

The anticipated loss of $15 million in billings from Raytheon Co. drove Ingalls Advertising to cut at least a dozen staffers last week.
In a move independent of the layoffs, Diana Scott has resigned as managing director of the agency’s direct response unit, Ingalls One to One Marketing. She had been with the shop for nearly four years.
Scott is expected to join John Hancock Financial Services in a senior marketing post. Her appointment will not become official, however, until after a vote of the company’s board of directors, expected early next month, Scott said.
Ingalls One to One Marketing handles assignments for Hancock’s marketplace division. Agency chairman and chief executive officer Bink Garrison said Scott’s departure to a client company makes her loss somewhat more palatable. Scott will be replaced, he added.
As for the layoffs, “Raytheon is a complicated piece of business and we had to respond [to losing them],” Garrison said.
Staff cuts were made across the board in all departments, said Garrison. At least two additional staffers volunteered to leave, he said. The losses account for roughly 7-10 percent of the agency’s overall staff.
Ad duties for Raytheon’s corporate account and individual business units were recently placed in review [Adweek, Oct. 5, 1998]. The client has not discounted the possibility of reassigning some of that work to Ingalls, but sources said such a scenario is unlikely. All told, the agency stands to lose $15 million in annual billings, a figure sources said equals more than half of the total Raytheon account, one of the shop’s largest.