ARNOLD SLASHES 40 FROM BOSTON OFFICE

Largest Layoff Ever for Havas Network; More Cuts Expected

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BOSTON (AdAge.com) -- Havas Advertising's Arnold Worldwide has undergone the largest layoff in the agency's history, cutting 40 people, or about 6% of its staff, at its Boston headquarters.

This is the third round of layoffs in Boston since summer 2001; the job cuts hit all levels and departments, Francis J. Kelly, president and chief operating officer at Arnold Worldwide, said.

He attributed the cuts to the continued slow economy and to spending cuts in Massachusetts' anti-smoking campaign, whose budget had been estimated at $10 million.

Arnold, which had prided itself on

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no layoffs, last year laid off 5% of its staff.

Mr. Kelly said because Arnold cut so few people last year, compared to double-digit cuts at other agencies, it had to act again.

He said he did not expect further reductions in Boston but said layoffs are possible in Arnold's four other U.S. offices: New York, San Francisco, St. Louis and Washington.

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