TBWA\C\D Cuts 40 Employees

NEW YORK TBWA\Chiat\Day has laid off about 40 employees, mainly in its Playa del Rey, Calif., office, sources said.

The layoffs cut across all departments and the Omnicom Group agency’s Tequila direct marketing unit, whose largest client is Nissan. The 5 percent cut also affects a Nissan service office in Nashville, Tenn., that’s tethered to Playa del Rey, where the account is based, said sources. The shop’s New York office was not affected.

A TBWA\C\D representative acknowledged a 5 percent reduction but declined to confirm the number of staffers involved. The move leaves a staff of about 710, down from 750 at the end of last year, said sources.

“As the marketing needs of our clients have changed as a result of the current economic climate, TBWA\Chiat\Day Los Angeles has had to redefine and redistribute its resources in order to accommodate the current demands of our clients,” the rep said, in a statement. “As part of this process, staff reductions are being implemented across all disciplines.”

Nissan’s major media spending declined 18 percent last year to $650 million-plus from about $800 million in 2007, according to Nielsen. Playa del Rey’s other clients include Apple, PepsiCo, Visa, Mars, Sara Lee and Energizer.

TBWA\C\D is not alone, as numerous agencies of virtually every size and discipline have cut back since the economy began slumping last fall.

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