GCI to reduce US work force by 5%

NEW YORK: GCI Group is steeling itself to announce a series of

company-wide layoffs that will reduce the US work force by a reported

5%.



According to a number of sources close to the New York-based agency,

approximately 50 positions have been eliminated from GCI offices in LA,

San Francisco, Atlanta, Chicago and New York. Insiders said no one

particular practice area was targeted, although San Francisco is said to

be the location hardest hit, with a reported 10-15 employees receiving

pink slips.



CEO Bob Feldman did not directly deny or confirm the downsizing

rumors.



'We have not formally announced anything, but it is safe to say that

like every other agency right now, we are looking at ways to better

align our staff capacity and revenues,' he told PRWeek.



GCI has been hit hard by the dot-com decline and the falling corporate

tech market. The San Francisco branch was heavily weighted with consumer

Internet clients, such as MP3.com and NetCentives, despite also boasting

consistent growth in biotech and public affairs. GCI also suffered from

a string of senior staff resignations in New York.



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