Major layoffs hit Callowhill's Tonic Design - Technical.ly Philly

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Nov. 16, 2016 12:59 pm

Major layoffs hit Callowhill’s Tonic Design

The company laid off 12 of 62 staffers at the end of October.

At Tonic Design.

(Photo by Chris Lindinger via Twitter)

Callowhill-based design firm Tonic Design laid off 12 people at the end of October, downsizing from a staff of 62 to a total headcount of 50, according to the company’s founder, Mac Morgan.

An initial report by a staffer who spoke to Technical.ly under the condition of anonymity said the layoffs were close to “half the company.”

“I don’t want to say [the layoffs] weren’t major, as I am sure they were to the team members affected and the ones still here and I want to be sensitive to that,” Morgan said. “However, it did not impact anywhere near half the team.”

The anonymous staffer also mentioned the loss of a major client as a determining factor, but the company denied any major accounts had been terminated. Tonic has done work for brands like AT&T, AstraZeneca and Johnson & Johnson.

Back in July there were also three terminations brought forth by “financial decisions,” said Managing Director Justin Matthews.

“While not a decision that was entered into lightly, it was something we felt we had to do to put the business in best position moving forward and we are doing what we can to help the team members that we let go transition to new opportunities,” Morgan said.

In 2014, Tonic Design unified offices in Callowhill after its merger with design studio DmgCtrl.

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Roberto Torres

Roberto Torres became Technical.ly Lead Philly Reporter in May 2016. Prior, he was a freelance contributor to Technical.ly and Al Dia News. The native Venezuelan moved to Philadelphia in 2015 after reporting on research at his alma mater, the University of Zulia. Whenever he's not fencing deadlines, he can be found standing in line at Overbrook Pizza in West Philly, running Netflix/Hulu marathons with his wife or reading news from Venezuela.

  • Elleanna Dwyer

    I don’t understand why an anonymous source is cited when all they have to say is seemingly gossip. Seems like citing these allegations is rather careless and really an unfair representation of Tonic and could result in negative and harmful effects on the company and it’s employees.

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