The World: New York - Red-faced Carat apologises after e-mail gaffe

Carat was forced to issue an apology to its entire US organisation last week after an e-mail highlighting planned layoffs was accidentally distributed across the company.

The e-mail, which was meant for senior management only, included details of how staff and clients would be informed of the cuts, leading to suggestions that the agency was to be less than forthright when discussing the issue with clients.

The Aegis-owned Carat is cutting around 10 per cent of its employees in regional offices around the US, as part of a $15 million restructuring charge.

The Aegis chief executive, Robert Lerwill, said that Carat's problems "stem from client losses".