Powell Tate hit by new round of cuts

WASHINGTON: Powell Tate has made another round of layoffs, blaming the slow economy.

WASHINGTON: Powell Tate has made another round of layoffs, blaming the slow economy.

Powell Tate, part of Weber Shandwick Worldwide, declined to reveal the number of employees released from the firm, saying only that the cuts were made at all levels. The first known round of cuts came last June.

Jody Powell, chairman of the agency, said, "Some clients are cutting back on budgets. But clients are moving more slowly on projects, and revenues anticipated in the first quarter didn't materialize. This is beginning to change in an encouraging way. But I don't think anyone in this business can be absolutely confident of what the year holds."

Agency spokesmen said all client teams would continue, and client service will not be affected.

Sources close to the firm said the anticipated merger with another WSW company, BSMG, is causing Powell Tate to do some restructuring. The merger is expected this summer.

Powell Tate has said the merger will be complete when it has moved into WSW's offices. As yet, it is staying in its own building.

Powell said that his agency will continue to operate under its own name.

When Shandwick International acquired Powell Tate in 1999, the initial intention was to dissolve that name. However, the decision was reversed when the principals said there was brand equity in Jody Powell and Sheila Tate's names.

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