We Hear: 30 iCrossing Staffers Lost Their Jobs

Sources tell AgencySpy that over the last week, some 30 iCrossing staffers have been laid off. According to sources, a pending lawsuit filed by Agency.com which purports iCrossing filched staff is “tearing” the agency apart. And of course, the economy isn’t helping.

Hmm, with a multi-million dollar shiny new office in Brighton, you’d think there would be enough cash to keep the bees around. But maybe they’re cutting a few here, a few there.

The $19.5 million lawsuit claims that after leaving the company in 2006, former Agency.com CEO Don Scales teamed up with iCrossing prior to the end of their 180 day agreement (during which time Scales was paid by Agency.com and expected to remain “loyal” and keep his “promise” to the company). Translation: non-compete, non-disclosure, non-solicatation contracts existed, but Scales may have breached them.

The suit claims Scales actively sought Agency.com staff and clientele; actions that they believe lead to the closing of Agency.com’s Dallas office in 2007, and “decimated” the Chicago office.

Per a source familiar with the lawsuit, the case is ongoing and there aren’t any updates. But somehow, iCrossing’s executive team has managed to erode $50 million in value. In just 18 months. What’s the connection? Bad decision making from the executive group.

We can’t say when or who, but rumor is some of the top people are thinking of bailing.

iCrossing representatives did not respond Wednesday evening. As always, e-mail matt@ mediabistro.com with deets.


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