The UK advertising agency Saatchi & Saatchi, which employs 23 people in Dublin, is to close its Irish operations next month as part of a major reorganisation of its European business. The firm is also closing or selling on its operations in Barcelona, Munich and Oslo.

Saatchi & Saatchi has offered its Irish employees opportunities to work within its worldwide network. Irish chief executive, Mr Brian Dunnion, will be retained by the company as a consultant in Ireland to work on a number of projects including international brand strategy development it said yesterday.

The Irish office was established in 1979 when Saatchi & Saatchi bought the O'Kennedy Brindley advertising agency. Its clients include Eircell, Delta Airlines, Grants of Ireland, Norwich Union, Proctor & Gamble and Texaco.

Saatchi & Saatchi European chief executive, Mr Derek Bowden, said the decision to withdraw from Ireland is not an issue of local performance.

"It reflects the way Saatchi & Saatchi increasingly handles its large multinational clients. We no longer need an office in every European capital. The needs of multinational clients operating in Ireland will in future be handled through Saatchi's London office" he said.

It Irish operations have been profitable with an annual turnover of around £1.2 million (#1.52 million) and achieving profit margins of 10 per cent, according to Mr Dunnion. The Irish branch has also won a number of creative and effectiveness awards in the past four years for its advertising campaigns. "The handling of pan European clients, which historically were serviced on a country-by-country basis, is increasingly being consolidated within the bigger agencies of the network" he said.

(# signifies the euro)