BBDO Talks Shop With Organic

In two separate moves calculated to bolster its economic viability, San Francisco-based i-shop Organic is eliminating 300 positions and discussing a strategic alliance with BBDO Worldwide and its U.S. digital marketing agency, @tmosphere.

An Organic spokeswoman confirmed Thursday that Organic is restructuring and laying off about 35 percent of its staff. The company anticipates saving about $50 million annually by eliminating over capacity and lowering overhead, according to a statement by CEO Mark Kingdon.

Kingdon hinted in his statement at the possibility of “new strategic and financial relationships with several companies which complement our offering and further enhance our skill sets and client network.”

BBDO and Organic presently share clients British Telecom, DaimlerChrysler, General Electric, GPU and Charles Schwab. Additionally, BBDO’s parent company, Omnicom, holds a 17 percent stake in Organic. The companies were close-mouthed about the putative deal, disclosing only a few details in individual statements.

Organic also announced that Nasdaq is reviewing its eligibility for continued listing and the company has 90 days to regain compliance with the minimum bid price requirement of $1.00 under marketplace rule 4450(a)(5).

Publish date: March 30, 2001 © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT