NEW YORK -- Agency.com in San Francisco is planning to move in to vacant space at crosstown agency, TBWA\Chiat\Day, sources said. The interactive shop is in final lease negotiations with the Omnicom shop, according to sources, who described the agreement as a cost-saving measure for both offices.
Layoffs earlier this year left both Agency.com and TBWA\C\D with unused space in their Bay Area locations, sources said. In May, Agency.com let go about 90 staffers or 20 percent of its worldwide workforce as a part of a restructuring [IQ Daily Briefing, May 8]. In February, TBWA\C\D in San Francisco slashed about 50 of its 91 staffers stemming from its Levi's loss.
It is unclear how many staffers make up Agency.com's San Francisco office; TBWA\C\D in San Francisco currently has about 35 staffers, according to sources. Agency.com and TBWA\C\D representaives did not return calls by press time.
Agency.com, once an Omnicom unit, is a part of Seneca, a company set up last year to control Omnicom's investments in several besieged Internet firms. Omnicom in the summer acknowledged that it was interested in buying New York-based Agency.com from Seneca [IQ Daily Briefing, June 12].