Sirius Canada Inc. and Rethink have parted ways, necessitating the layoff of five employees at the Vancouver-based ad agency, according to partner and co-founder Tom Shepansky.
“Things have slowed a bit,” said Shepansky, of the Sirius business. “We’ve chosen to part ways [with Sirius]. It’s very amicable and we are working through a transition.”
Rethink won the Sirius business in July 2006 working with Chris Brockbank, vice-president of marketing. Brockbank has since left the Toronto-based company.
Sirius Canada is a partnership of the CBC, Standard Radio and U.S.-based Sirius Satellite Radio. The two Canadian partners each own 40% and the U.S. company owns the remaining 20%.
Sirius Satellite Radio recently won U.S. Justice Department approval for its proposed US$5-billion buyout of rival XM Satellite Radio Holdings Inc. in the U.S., leading to some speculation that a similar deal could be in the works for Canada.
Sirius spokesperson Jeff Roman, said his company is conducting an agency search but won’t say what agencies are in the running, nor when a decision is expected. “We have invited a few select agencies to come in and pitch for the business,” he said.
When asked about the reasons for the split with Rethink, Roman said, “The needs of our business are changing. We love Rethink we think they are a stellar firm, they do great work.”
He said also said Sirius has not yet replaced Brockbank, who left the company to join Sun Media.
Shepansky said the agency did not let go any staff after parting ways with Future Shop late in 2006 and actually added employees at the beginning of this year.
“I think that with growth sometimes you get some inefficiencies and our model is about efficiency,” said Shepansky, adding that the agency now has about 60 employees.
