NEW YORK: Magnet Communications, the PR firm owned by French marketing company Havas, will move from underneath the Arnold Worldwide Partners umbrella to the Euro RSCG division under a new Havas reorganization that was announced on September 18.
The move was confirmed by Magnet president and CEO David Kratz, who also said that the agency would not change its name in order to reflect its new affiliation.
"The Euro RSCG network can afford resources for clients and for its firms to meet different clients, so I'm excited about it," said Kratz. Euro RSCG is the fifth-largest global agency.
The reorganization was announced along with a first-half net loss for 2003 of $65 million and a plan for 850 layoffs by 2005, most to be spread throughout Havas' European holdings. These layoffs are in addition to the 747 job cuts already made in the first half of 2002.
Kratz said that besides the move, nothing about the firm's operations would be significantly impacted.
Euro RSCG chairman and CEO Bob Schmetterer declined to comment on the specific companies joining the network.