Once among the top 25 public relations firms in Los Angeles, with a client list that has included giants such as Chevron Corp. and City National Bank, Stoorza Communications has shrunk its local operation to three employees as part of a company-wide downsizing effort.

In recent weeks, the San Diego-based firm has sold off three of its five business units and reduced its staff from 90 employees to less than 25. Its L.A. public affairs practice has lost six of nine employees. During the recent retrenchment, Stoorza parted ways with the Business Journal.

Stoorza President John Spelich said the move was made to make operations more manageable and turn the company from a mid-sized firm into a “boutique,” which often appeals to clients looking for more personalized service.

“We were neither big nor small,” he said. “The market was telling us… there was a hunger for smaller shops where you could feel like you were getting the focus of more senior people.”

Before downsizing, Stoorza had four offices, two of which were sold off to company executives. The firm’s political consulting unit was recently sold.

Spelich declined to disclose financial figures for the firm, but Stoorza reported nearly $10 million in fee income for 2000.

Stoorza is one of numerous public relations firms in L.A. that have tightened their belts.

“Growth definitely has slowed, but I would say there’s still growth,” said Stefan Pollack, president of the L.A. chapter of the Public Relations Society of America, a national organization for industry professionals.

“A number of agencies are suffering terribly from that here in Los Angeles,” said Ron Hartwig, executive vice president at Hill & Knowlton and general manager of the L.A. office.

A survey of PR firms nationwide by the Council of Public Relations Firms, a New York trade association, shows that the industry will see less than 10 percent growth this year, as compared to a 32-percent increase in 2000. Layoffs are expected to fall between 5 and 10 percent of staffs.