The closure will affect 485 employees in Detroit and Windsor, Ontario, according to a BBDO spokesman.
“While we remain committed to working with Chrysler and are hopeful that an agreement can be reached, we now have to assume and plan for the fact that our relationship will end when our contract does on Jan. 26, 2010,” BBDO said in a statement.
In July, Chrysler told BBDO it wanted to pursue a new relationship after its current contract expires, but as of this week an agreement had not been reached.
“We have a moral obligation to give our people as much notice as possible to plan for their futures, and a commercial one to plan for the likely closure of the BBDO Detroit office. We have, therefore, today given notice to the BBDO Detroit staff that the agency will close at the end of January,” BBDO said in the statement.