Arnold Lays Off 14 Percent of Staff

ATLANTA–Arnold has laid off 16 employees, about 14 percent of its staff of 116. Ken Umansky, president of the McLean, Va., shop confirmed the firings, which are effective immediately.

“We put it off as long as we could,” he said.

Umansky said the decision was caused in large part by the shop’s loss of Championship Auto Racing Teams, an account estimated at $10-15 million, and a decrease in spending among other clients.

CART, which selected Arnold over Wieden + Kennedy in Portland, Ore., and McCann-Erickson’s Detroit office last October, shifted marketing philosophies late in 2001.

“They brought in a new CEO with a fundamentally different philosophy on where the company needed to go,” said Umansky. “Instead of promoting the brand, they’re doing minimal advertising for individual races.”

In late February, Arnold’s Boston-based headquarters eliminated 40 staffers, six to eight percent of its staff.

Arnold is a division of Paris-based Havas.