The agency has made three staff redundant after three clients pulled their budgets. CEO Johnny Pitt said these redundancies brought the total headcount of Launch Group to 32.
Sources said remaining staff have been asked to take a pay cut, but Pitt would not confirm or deny this detail.
He said: ‘We won three six-figure budget clients at the end of the past year, but these pieces of business disappeared overnight as they pulled their budgets in response to the recession. So we have had to take the necessary steps. But our pitch success rate over the past nine months has been 84 per cent.’