TSI hacks staff in wake of IBM loss

NEW YORK: Two Interpublic Group (IPG) agencies were forced to make

eeping layoffs in its tech areas last week.

TSI Communications will lose $10 million in IBM business

effective September 30, the day before new IBM contracts go into effect.

Big Blue, a 12-year TSI client, represented half of its billings. More

than half of its New York staff - 62 of 110 workers - and just over 20%

- four out of its 18 South San Francisco workers - have been told they

will be laid off at the end of September.

TSI president Kelly Fitzgerald said she was working to find positions

within IPG for laid-off workers. She praised sister agency Golin/ Harris

for helping her manage the process. "It's not easy to replace $10

million of business in a day, but we're looking forward to building the

agency back up," she said.

Layoffs at Weber Shandwick Worldwide have occurred in the Bay Area, as

well as in Cambridge, MA. WSW CEO Harris Diamond would not discuss

specifics besides saying cuts were in the tech sector. He said staff

cuts were in line with a fall in tech revenues.

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