Deustch LA Cuts 3% of Staff, GM Likely at Root

Update: A spy tells us the headcount is at 47. What have you heard? Post in the comments.

AgencySpy has fielded a number of tips concerning Deustch LA and yesterday’s layoffs. We’re told by an agency representative that a number equaling three percent of the staff have been let go from the agency. Unable to provide a total headcount, we’re forced to rely on the numbers we’ve been given by various sources, which range from 30 to 50 people.

“We’ve examined our resource needs based on reduced client spending in key categories for the year. As a result, we have reduced staff by 3%,” the agency said in an e-mailed statement.

The agency rep. went on to say that for now, no other layoffs are expected &#151 for Deutsch and many other agencies, it’s a waiting game.

Sources inside the agency noted that the cutbacks are a result of GM cutbacks. Deutsch LA currently works on the Saturn brand, and GM’s decision not to invest in media for the brand is surely a prime cause.

More: “Deutsch Gets Deep Into Content”

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