Heavy layoffs loom at 1 DCX ad agency.(layoffs at one agency working with Chrysler)(Brief...

One of the two advertising agencies for DaimlerChrysler's Chrysler group will be forced to lay off up to 40 percent of its employees, says an executive with one of the agencies.

To cut costs, the Chrysler group will choose one global creative agency and create one global media planning and buying unit, the company said.

The automaker is requiring a shootout between FCB Worldwide, a unit of True North Communications Inc., and BBDO Worldwide, a unit of Omnicom Group Inc. The two must pitch a new structure for media planning, buying and creative work by Oct. 6.