MPG has 14 offices across the US and Canada and the cuts represent 15% of its 409-strong workforce. No offices are to close.
The agency pulled out of the Intel review in January saying that it saw the loss as inevitable. Intel eventually awarded its account to Interpublic's McCann Worldgroup earlier this week.
After MPG gave up on Intel, it fought to keep Volkswagen on board, but saw the client sign with MediaCom at the end of January.
MPG is currently between CEOs as it waits until April 1 for Charlie Rutman to arrive after seven years with Carat USA. Its former CEO, Jim Rose, departed in November for Texas-based Mosaic Sales Solutions.
Rutman's task of stopping further client defections could be hampered by the uncertainty surrounding Havas' strategy for MPG.
Havas has been seeking a tie-up between MPG and one of its rivals. MPG is seen as being traditionally strong in Europe, but weak in the US. Havas was reportedly in talks with Interpublic Group, which owns Initiative Media and Universal McCann, before Christmas but no deal was signed.
However, there is the prospect of interference by the group's largest shareholder, corporate raider Vincent Bollore, who has not clarified to Havas chief executive Alain de Pouzilhac why he has been increasing his stake in the group and what he plans to do.
De Pouzilhac told French newspaper Les Echos in January: "It is complicated and delicate to conclude this type of alliance when the intentions of the main shareholder are unknown."
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