As Agency Sees Accounts Move, Layoffs

Goodby, Silverstein & Partners has lost Pizza Hut’s $6-10 million children’s ad account in the wake of a reorganization at the client’s parent company, PepsiCo.
That loss, coupled with the recent departure of several other clients, has forced the San Francisco shop to lay off about half of its 20-25 member design group.
The unit handled various projects for such former clients as Norwegian Cruise Line, Starbucks and Haggar. Earlier this year the agency resigned the Haggar account due to conflicts with Nike. Norwegian and Starbucks split with the agency in the last few months over creative differences.
Goodby, which has more than 200 employees, laid off about 10 design and promotions staffers this month. “We want to keep the [unit] smaller and focus on high-end design work for clients such as Nike,” said Rich Silverstein, agency principal and co-creative director.
The shop’s newest account, the $3 million Crystal Cruises business, is expected to involve design work as well as print advertising. The account, which moved from Citron Haligman Bedecarrƒ in San Francisco without a review, replaces Goodby’s Norwegian account.
Separately, Pizza Hut said it will continue to run advertisements aimed at children, but in a more limited fashion. Should the client maintain a kids account, sources believe it would be handled by Pizza Hut’s lead agency, BBDO in New York.
–Joan Voight with Kathy Tyrer