Banks Sadler has confirmed that seven posts - two fewer than anticipated - have been made redundant at its London office.
Chief executive Leigh Jagger said the redundancies followed a two-weeks consultation period.
She blamed the recession for the job cuts and said the agency had worked hard to avoid redundancies.
"While we are obviously pleased that we have been able to reduce the number of positions affected, it is nevertheless upsetting to lose anyone from our close-knit team," said Jagger.
"Despite winning several new accounts in the past few months, the business from these new wins is not yet enough to offset cutbacks in other areas."
Banks Sadler has created three new posts, both temporary and permanent, to those made redundant in an effort to "hold onto our talented team", said Jagger.
"If these roles are filled by the individuals affected, it does mean that we then only lose four staff in the short-term and we have time to see the impact of some of our new accounts before making longer term decisions," she said.
Banks Sadler has won and retained four accounts in the IT, telecoms, pharmaceutical and professional services sector in the past two months.
It also won Gold at the Eventia International Awards 2009 for Best Incentive Travel Programme - Short Haul for its work with pharmaceutical firm Lilly.