Ad Agency Lays Off 40 in Boston

Boston-based advertising agency Arnold Worldwide has cut 40 jobs from its headquarters office.

The firm had a Boston head count of about 600 before the reduction.

The agency is known for its work for Fidelity Investments, Citizens Bank, McDonald’s, and Volvo.

Arnold will also impose agency-wide salary cuts, with senior executives especially targeted.

All employees, including those who were laid off, will receive a 2008 bonus. Laid-off staffers will also receive severance pay.

Last October, Arnold laid off just under 50 people.