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Struggling interactive services firm Razorfish said it closed its office in Helsinki, Finland, as a cost-cutting measure, but said the fate of the 60 or so employees in the office was unclear.

"We made the decision to close the office," said Razorfish spokesperson Melissa Kramer. "We're doing what we need to in order to manage our costs."

Beyond that, however, the New York company was mum on whether the Finland employees would be reassigned or cut loose.

Razorfish set up the Helsinki office in 1999 primarily as a research and development center for wireless technologies, where clients could test out their new wireless roll-outs over different gateways. But the concept was also duplicated last summer when Razorfish launched a similar office in New York with the same capabilities, including in-house training in wireless protocols for clients and staff.

Part of the uncertainty about the Finland employees lies European labor laws, which are much more stringent about how to approach layoffs compared to the United States.

Kramer said the Finland office has appointed a designee to help determine and negotiate severance and placement and the termination process. Razorfish has been pulling back on the scope of its services to reflect a contracting demand for interactive and digital professional services in the post dot-com boom era.