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McDonald's Corp., Oak Brook, Ill., said it's cutting 525 positions, or 23%, from its corporate headquarters staff as part of a move begun last summer to divide the U.S. division into five separate operating units. It's the first significant staff cut in McDonald's history. Jack Greenberg, president and CEO-elect, told franchisees the cuts won't affect jobs close to operations and customer relations. "This will clean the slate and allow Jack to make sure he's got a cadre of people that are marching to Jack Greenberg's drum," one franchisee told Advertising Age.

Leap reports $14,986 profit for 1st quarter

Leap Group, Chicago, reversing a year-ago loss, reported net income of $14,986 in its first quarter, ended April 30. Revenue of $10.4 million was up 132% from a year ago. Leap had a $1.15 million loss in its first quarter last year.

FDA reaffirms safety of Olean in snacks

A Food & Drug Administration panel, following a review, reaffirmed the safety of fat substitute Olean in salted snacks. The move June 17 came two days after Frito-Lay Chairman Steven Reinemund, in an open letter in The New York Times, touted the product's safety in light of what he called "raised rhetoric" from Olean critic Center for Science in the Public Interest. CSPI, petitioning the Federal Trade Commission to bar Frito-Lay and Procter & Gamble Co. from marketing products containing Olean as "fat-free," said it was "disappointed" by the FDA's finding.

Heinz to buy College Inn broth line from Nabisco

Nabisco said it agreed to sell its College Inn line of canned broths to H.J. Heinz Co. Nabisco said the sale is the result of an ongoing strategic review of its product lines. College Inn, a $50 million business, "doesn't fit strategically with our focus," Nabisco said. DDB Needham Worldwide, Chicago, is agency for Heinz USA.

Ferragamo moves $50 mil media acc't to Zenith

Italian luxury goods marketer Salvatore Ferragamo gave Zenith Media its estimated $50 million global media buying and planning account. Much of the work was handled in-house. Annamaria Zaffagnini at Zenith in Milan is responsible for worldwide coordination, working with New York and Hong Kong regional managers.

$40 mil int'l Nicorette effort goes to DDB

Pharmacia & Upjohn appointed BMP DDB, London, to handle the $40 million account for Nicorette smoking cessation products outside North America. Bates Dorland previously handled. Media planning and buying remain at Zenith Media. "We are poised for a new phase of growth and were looking for a partner to help us develop a unique image for our brand," said Mats Hakansson, brand director of nicotine replacement therapy at Pharmacia.

NAD finds P&G's deodorant ads lacking

Procter & Gamble Co. lacked adequate substantiation for superior-effectiveness claims made in ads for Secret Sheer Dry and Sure Sheer Dry antiperspirant and deodorant products, according to a decision from the National Advertising Division of the Council of Better Business Bureaus. NAD said P&G agreed to halt such claims until it has evidence that establishes a "reasonable basis" for the claims. Gillette Co. challenged the ads. P&G said it was "disappointed" NAD did not accept its supporting evidence. It said its "planned use of efficacy claims has already expired and P&G's current advertising fully complied with NAD's decision." Grey Advertising, New York, and Leo Burnett USA, Chicago, handle.

Longtime ASTA chief Duncan to resign

Tim Duncan, longtime executive director of the Advertiser Syndicated Television Association, is resigning effective July 1. ASTA is reorganizing and has been conducting a search for a president. A number of ad agency executives have been urging ASTA to become a higher-profile organization. Mr. Duncan, who has served as executive director since 1987, is returning to his consulting practice, Boston Media Consultants.

Revlon to help NBC tout returning shows

NBC will hook up with Revlon for a one-week watch-and-win sweepstakes to promote four of its returning shows. Starting Sept. 21, viewers will be asked to identify a "wardrobe color" worn by actors in "Caroline in the City," "Mad About You," "Just Shoot Me" and "Frasier." Grand prize is a Cadillac Catera painted in Revlon's new fall color -- brazenberry. In other NBC tie-ins, Clairol will sponsor a six-page insert in the September Vogue promoting the new fall lineup. Barq's root beer and United Airlines are also involved in various promotions.

Saatchi chief lauds its U.S. operations

Saatchi & Saatchi Chairman Charles Scott praised the "turnaround" of its U.S. operations at the company's annual meeting in London. "Three years ago, the U.S. was a problem for us. We had a mediocre creative reputation and morale was low," he said. "Today it's a different story. We are rapidly building our creative reputation, morale is high and we are winning business."

Rainforest Cafe hires marketing chief

Rainforest Cafe, in a move to build brand awareness, hired Jack Masilow as its first VP-marketing. He joins the theme restaurants from Grand Casino, Minneapolis. There are 15 U.S. Rainforest Cafes and four international locations. A spokesman said marketing so far has been handled in-house.

Krouse, Pilotte take new jobs at Wendy's

Wendy's International created two new marketing positions, with Thomas Krouse rising to VP-marketing, from regional marketing director for the upper U.S. region, and Mary Ann Pilotte going to VP-planning, marketing analysis and information, from regional marketing director, Wendy's Restaurants of Canada.

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