Temerlin McClain Cutting Payroll

Temerlin McClain on Thursday morning informed employees of plans to cut staffing by 20 percent, about 100 people.

“It’s never an easy decision to reduce employees,” CEO Dennis McClain said. “However we’ve had to reduce our staffing levels given the softening in overall client spending, especially in the technology and dot-com sectors, which have fueled our growth in the past year.”

The agency lost some revenue in the last two months as Verizon consolidated its DSL account at Lowe Lintas, and DDB New York picked up the international portion of its Nortel account through a business service agreement.

The layoffs, as expected (Adweek, April 30), are in anticipation of McCann-Erickson’s merger of Dallas and Houston offices under Temerlin McClain, as parent company Interpublic Group finalizes its pending acquisition of True North Communications, Temerlin McClain’s corporate parent.

A source said the staff reductions pave the way for an expanded Temerlin to take on a larger role as the local affiliate of the McCann-Erickson network. Retaining the Temerlin McClain name, the new agency will be led by Dennis McClain, and McCann’s employees — 115 in Dallas and 20 in Houston — will move into the Temerlin building in Irving, Texas.