Zentropy Realigned

Online marketing firms continued to churn last week, with a major restructuring at Interpublic Group’s Zentropy Partners and layoffs expected to begin soon at Omnicom’s Razorfish.

Zentropy, Cambridge, Mass., is being aligned with McCann-Erickson WorldGroup’s MRM Worldwide network. Mc-Cann is also owned by IPG.

Razorfish, New York, intends to slash 6-8 percent of its 1,800-plus global workforce, and some analysts anticipate bad news in earnings statement due out this week, sources said. Razorfish employs several hundred staffers in its Cambridge office. Razorfish declined comment.

Michael Tey, who had been Zentropy’s chief engagement officer, succeeds John Connors III, Zentropy’s founding chief executive, who will remain with Interpulic’s Internet Ventures Group. Connors’ title and duties have not been disclosed, a McCann spokesperson said. Connors, son of Jack Connors, CEO of IPG’s Hill, Holliday, did not return calls by press time.

A realignment of Zentropy was anticipated in light of the group’s inability to win and retain substantial new business and continued softness in the Internet segment, sources said [Adweek, Oct. 16].

Some staffing cuts have already been made, but more layoffs are expected, sources said. The McCann spokesperson declined to address those issues; Zentropy’s worldwide staff is between 500 and 1,000. Separately, AnswerThink, Miami, recently announced staff cuts in both its London and Boston offices, along with plans to close the latter [Adweek, Oct. 9].