16 people have been made redundant at Leeds marketing agency Brass.
But boss John Morgan says he is positive for the business despite "challenging" times ahead.
Mr Morgan says that "difficult" economic times since 2008 meant that jobs had to go but believed the firm can now move on.
Staff were consulted about redundancy before Christmas and 16 have left. Brass now employs 160 staff.
Mr Morgan, chief executive at the Headingley-based company, said that a difficult 12 months had forced the agency to look at its costs leading to 16 being made redundant or taking voluntary redundancy.
He said: "This was a difficult period for all involved but was absolutely necessary to maintain the long-term strength of the business.
"We have a strong business and a fantastic team with a great track record and we are looking forward to the opportunities and challenges that 2011 will undoubtedly bring."
He added: "Staff have been understanding by and large, relatively supportive, but it was something we had to do."
Brass was set up 27 years ago and has built up a list of high profile clients over the years such as Asda and Royal Mail.
New accounts over the last year included Hammonds, Freemans and Holiday Cottages, owned by Hoseasons, but the economic impact on public sector clients has hit hard.
Now Mr Morgan said he is looking forward and hoped the business would be able to build up more success.
He hopes that a new office in London will help attract clients in the south where Brass already works for a number of businesses.
He said that he was cautiously optimistic now.
Mr Morgan said: "We are in a reasonable place from a business point of view. We are strong and independent.
"We are not going to be in La La Land thinking it will be a fantastic year."
Mr Morgan said that Brass's wide portfolio has helped it attract a range of clients, helping it weather the economic storm.