Update 2: (8% of staff will be cut from a stable of 800 globally - 64 people) From Enfatico's blog, nextstoryboard —

"Today, we announced a proposal to restructure our team and decrease our workforce by approximately 8 percent. Persistent cost pressures require that we reorganize our operations to better align our business with what is happening in the global economy. These changes also put us in closer alignment with Dell's new global structure and reduced marketing spend. We acknowledged these moves in an internal memo (see below to download) that we distributed today.

While the economic environment remains uncertain, we believe these proposed steps will strengthen our agency so that we can continue to deliver results for Dell and organize for future growth."

Note: there are about 800 Enfatico employees globally. We're working to find out how many are in Austin. If you know, e-mail matt@mediabistro.com or use the anon tips box.

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1:09 pm — 8-10

Update: The layoffs are happening as we speak. What began as a slow drip is now being described as a "slaughter house" — people go into the office and come out laid off. Here's an interview with CEO Torrence Boone that DM News published yesterday. Above is the video that accompanied that interview.

Sources inside WPP agency Enfatico tell AgencySpy that at least three people have been let go from the Austin, Texas staff today. We're awaiting word from the agency, but this news has been confirmed by multiple sources. We will update this story as we hear more.

More: "Dell Loses Another Top Level Enfatico Supporter"