The World: Detroit - BBDO set to make 22 per cent of staff redundant

The cuts are a response to the significant reduction in spending by the agency's flagship Chrysler client.

Through the first nine months of 2008, ad spending by Chrysler fell to less than $800 million, compared with around $1.1 billion that the car manufacturer spent for the same period in 2007.

The cuts, which will effect all departments, will leave the office with about 510 permanent members of staff.