CORDIANT CLOSES BATES WEST AGENCY

Irvine Office Still Houses Staff of 141 Worldwide, XM

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SAN FRANCISCO (AdAge.com) -- Cordiant Communications Group, parent of advertising agency Bates Worldwide, has significantly scaled back its operations in Irvine, Calif.

Approximately a dozen employees of ad agency Bates USA West were let go Oct. 18. The move results from the loss this past summer of the $200 million Hyundai Motor America account as well as other remaining pieces of business.

141 Worldwide, XM
However, employees of

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Cordiant's direct marketing firm 141 Worldwide and interactive shop XM remain at the Irvine location, where the ad agency employees also worked. Cordiant's lease on the office space is up in February, and management is expected to determine whether those employees will continue in the same space or be relocated.

Cordiant is expected to continue with a presence on the West Coast. Its brand and design consultancy Fitch Worldwide is based in San Francisco.

Move expected
The possibility of office relocations was announced Sept. 30 when David Hearn, chairman-CEO of Bates Worldwide, announced a corporate reorganization, which combines several of Cordiant's marketing services companies under one profit and loss statement.

"The integration will be both operational and functional, delivering substantial savings through reduced management costs, the consolidation of operations, and the elimination of redundant support functions," Mr. Hearn said in a statement at that time.

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