"We're sick about it," said a spokeswoman, who added the move was a "last resort" after making cost reductions and other cutbacks.
Agency leaders were hoping to avoid the paring with a win of the $400 million AT&T account, but Fallon was cut two weeks ago from the final round, making the move inevitable.
There is one silver lining, according to the agency: "We know they're highly marketable," said the spokeswoman of those laid off.
Earlier this month a handful of positions were cut from the agency's interactive ranks after the New York shop trimmed a handful of jobs in May. -- Kate MacArthur
Copyright June 2001, Crain Communications Inc.