Draft Cuts 7% of Its N.Y. Staff

CHICAGO Interpublic Group’s Draft has cut 40-50 employees—about 7 percent of its New York office staff—as it winds down its relationship with Bank of America, sources said.

A Draft representative confirmed layoffs had taken place in New York “to bring staffing levels in line with revenue,” but would not offer specific numbers.

BofA in August awarded its $600 million marketing services account to Omnicom Group after a holding company pitch that included IPG and WPP Group. The Omnicom agencies involved in the competition included BBDO, OMD, Organic, Live Technology, Javelin, Cultura, Radiate Group and TPN.

Incumbent IPG had worked on multiple elements of the business (such as traditional advertising, direct and events marketing and media services) since November 2002. Though 16 of the holding company’s agencies held portions of the account, sources said the largest slice of the $65 million in annual revenue went through Draft.

At IPG, the account had been led by the company’s chief marketing officer Bruce Nelson, who resigned in June after clashing with IPG CEO Michael Roth about how to manage the business. A month later, the Charlotte, N.C.-based bank confirmed that it had launched a review.

Though IPG officials have said the transition to Omnicom could take as long as six months, sources have suggested a speedier time line that would conclude by the end of October.