Key Business Losses Force Layoffs at DDB

DDB Worldwide is further restructuring its office here, planning “a fundamental change and more radical reorganization” after 20 people were laid off last week, an executive said.
One of the changes involves chief operating officer John Berg’s formally assuming leadership of the New York office from president Peter Tate, sources said.
The layoffs represented nearly 5 percent of the New York 430 staffers and was anticipated in the aftermath of DDB’s loss of the $300 million Compaq account.
“Obviously, when you lose an important piece of business like that, the agency has to bring
its salary structure in line with revenues,” said one source.
Given its account status, agency officials confirmed that more changes were coming but stressed that no more layoffs were planned.