The latest wave of layoffs swept through two shops last week, with Temerlin McClain planning to cut 30 staffers and DDB dismissing 16 or about 5 percent of its workforce.
Temerlin's im-pending cuts—about 6 percent of its staff—are said to anticipate a significant reduction in spending by client Nortel Networks later this year.
"Our industry has experienced a severe downturn and ... subsequently we are not pursuing our brand efforts at the same level we once were," confirmed Andrew Lark, Nortel's vice president of corporate marketing. "We require less people internally and externally."
Temerlin executives did not respond to a request for comment at press time.
Nortel's measured media spending topped $93 million in 2000, according to CMR, up dramatically from the $20 million the company was spending annually when Temerlin assumed the account in December 1998.
Temerlin in Irving, Texas, had already reduced its workforce by more than 100 people in early May. It simultaneously implemented an across-the-board payroll reduction of 5 percent as well.
DDB's cuts last week were made "to better align our projected revenues with costs," said Jake Schroepfer, chief executive officer and president of the agency's Dallas office.
While DDB has neither lost nor gained any significant business this year, "the overall softness in the marketplace and client spending going into the balance of this year has us being very cautious," Schroepfer said.