At least two large companies are cutting advertising costs, which will result in the loss of hundreds of Chicago advertising jobs.

Philip Morris, one of the country’s leading tobacco companies, recently announced that it plans to cut back on advertising. The company said it plans to scale back on spending for all brands except Marlboro, including Basic, Parliament and Virginia Slims.

According to an article by the Chicago Sun-Times, this could mean the loss of at least 300 advertising jobs. At ad agency Leo Burnett, between 400 and 500 people in Chicago and overseas work in part on Philip Morris advertising, making it one of the company’s biggest accounts. The company has not yet said exactly how many jobs in Chicago will be affected.

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One company’s closing has resulted in the loss of several Chicago advertising jobs.

Advertising agency JWT has decided to close its Chicago office, meaning about 50 employees will lose their jobs. Following the loss of some large clients, the agency was reduced to a satellite operation of JWT’s New York office.

During 2003, JWT lost one of its major clients, Miller Brewing. Two years ago, one of the agency’s biggest clients, Kraft Foods, pulled almost $200 million worth of business out of JWT. Kraft moved eight major brands from JWT, including Miracle Whip, Kraft Singles and Ritz Crackers to other agencies such as Ogilvy & Mather, Draftfcb, DDB and McGarryBowen.

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