Global public relations group FD has denied market speculation it will close its Manchester office, formerly called Tamesis, in the New Year.
The office has been reduced from four to two staff but, according to managing director Christopher Clark, will remain open.
Fiona McFadden, head of the Manchester office, has been made redundant. Neil Kirwan has joined rival Tangerine PR in Manchester. The remaining staff, Andrew Rieley and Vickita Chauhan, will stay in Manchester and have not been offered roles in London as rumoured, Clark said.
Clark added: "Unfortunately we have made a number of staff redundant across the group and one of those people was Fiona McFadden.
"We have been running more Manchester business from London and vice versa but that doesn't mean we are closing the Manchester office.
"In the last six to eight months the Manchester office has evolved from a property to a corporate team. Manchester staff have been spending more time in London and London staff more time up there depending on the client."
FD clients served from Manchester include Peel Holdings, Tesco and law firm Davies Arnold Cooper.
FD acquired Tamesis, based in London and the Northern Assurance Building on Manchester's Albert Square, in January 2005 from founders Tony Danaher and Sue Brown.