The World: New York - DraftFCB lays off staff due to adspend slump

The DraftFCB office in New York has axed 47 staff - about 2 per cent of its workforce - because of what it claimed were shifts in client spending.

Some clients are spending less, while others are moving money out of media in which the agency works, according to industry sources.

The agency's clients include Kraft Foods, Gerber, Citi, HP, the US Census and Fisher-Price.

Laurence Boschetto, the DraftFCB worldwide president, acknowledged some client budgets had changed "and as a responsible business we have had to adjust accordingly".

He denied reports that the New York agency might be merged with DraftFCB Healthcare.