Agency.com to Close Dallas Office

NEW YORK Omnicom Group’s Agency.com is shutting down its Dallas outpost, the company said.

The staff was informed yesterday that the 23-person office would be phased out by the end of the month. The agency laid off about 10 employees, per sources. The balance of the staffers will report to Agency.com’s Chicago office once the unit shuts down, though it is unclear where those employees will be based.

“The company has been looking to streamline its U.S. operations, and at the moment it makes sense for us to focus our growth on the three metropolitan offices of New York, Chicago and San Francisco,” an Agency.com representative said in a statement.

The Dallas office has handled clients Alcon, Affiliated Computer Services, CIT and 3M.

The agency rep said the company is working with those clients to shift the work to other offices, mainly New York and Chicago. It will also offer some staff members opportunities to relocate.

Agency Spy first reported the impending office closure yesterday.

Agency.com has hit a rough patch over the past 18 months, with executive turnover and staff defections. Founder and chairman Chan Suh returned to the CEO role in April, replacing David Eastman, who held the top job less than a year. A plan to align the shop with TBWA Worldwide has foundered, according to sources. (While Agency.com still reports financially through TBWA, it is operating as an independent company.)

In addition to its domestic offices, Agency.com has outposts in five European markets and Shanghai.