Digital Agency Digitas Cuts 2% of Staff

Move Comes as Clients American Express, General Motors Struggle

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NEW YORK ( -- Digitas has cut about 2% of its staff in several offices, including New York. The move is a response to the struggles of a few of its key clients, namely American Express and General Motors Corp., according to a person familiar with the situation.

The news was first reported by Silicon Alley Insider and confirmed today by Ad Age.

The cuts, while small, are notable because they have occurred at a digital agency, and digital media and marketing was thought to be less resistant to the economic downturn.

That's not, however, always the case. Digitas is not the only interactive shop affected; a few months ago, for example, Microsoft's Razorfish agency made cuts. And several large online media companies have also reduced headcount.

"In response to changing client needs, we have taken the difficult step of restructuring staffing levels at some of our U.S. offices," Digitas said in a statement. "We have redeployed talent wherever possible, but the realities of the current economy did require that we let some talented people go in order to best position the agency for continued growth and success."

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