Agency.com to Shutter Boston Operation | Adweek
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Agency.com to Shutter Boston Operation

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NEW YORK Agency.com plans to close its Boston office by the end of the year, the i-shop confirmed.

In a statement issued today, the interactive agency said it will "consolidate its Northeast offices into its headquarters in New York over the course of the next several months."

The 8-year-old company, which will continue to serve the Boston market from New York, also said it has offered relocation packages to a number of the New England staffers. It is unclear how many employees will be affected, and an Agency.com representative declined to say how much the company expects to pay in restructuring costs.

"These changes are necessary in order to allow Agency.com to respond to the changing needs of the marketplace and to efficiently and cost effectively deliver outstanding results for our clients," the company said in a statement.

The closing of the Boston outpost, which has recently handled assignments for the Institute for Healthcare Improvement and The Gillette Co., comes a year after Agency.com shuttered its Woodbridge, N.J., and Atlanta offices as a part of a restructuring. In addition to New York, Agency.com has operations in Chicago, San Francisco, Dallas, Amsterdam and London.

A year ago, Omnicom Group expressed interest in buying Agency.com, which is held by Seneca. While Omnicom purchased Organic, another Seneca i-shop holding, in a $106 million deal late last year, it has yet to pick up Agency.com. In 2001, Omnicom transferred its i-shop investments, including a 35 percent stake in Agency.com and a 17 percent stake in Organic, to Seneca in exchange for preferred stock in the firm.