Technology specialist Euro RSCG/DSW Partners in Salt Lake City has laid off 44 of its employees, or approximately 30 percent of its remaining staff. This latest round of cuts leaves the shop with a team of just under 100, down from 270 in 2000.
John Dahlin, a founding partner at DSW, attributed the restructuring to "a general decrease in client budgets and cautionary times."
The move comes amid concern that economic growth will be stalled as clients reassess their marketing strategies. Dahlin said the management at DSW concluded an adjustment is in order. "We are planning ahead," he said.
Key accounts at the shop, which recorded capitalized billings of $307 million last year, include Kodak, Intel, InFocus and Maxtor Corp. Dahlin noted that the cutbacks were not the direct result of any client loss.
In fact, the belt-tightening comes as the agency launches new work and recently added a client to its roster. A $750,000 print campaign for disk-drive maker Maxtor launched Oct. 1 and will run in targeted magazines such as CRN and VAR Business through December. The "Empty Office" print ad promotes Maxtor's Atlas 10K III Enterprise disk drive.
DSW also picked up new business from the recently merged national literacy organizations Laubach Literacy International and Literacy Volunteers of America. The agency has been tapped to develop a new brand identity for the merged nonprofit. The new entity is based in Syracuse, N.Y., and will announce a name later this year. The budget for the account was not disclosed.
DSW was founded in 1986. It recently broke new ads featuring Wile E. Coyote for InFocus data/video projectors and branding work positioning the state of Utah as a technology hub.