Yup we do. It works pretty well because we have about 12 well motivated employees. We also made sure that the design section is as far away from the administration as possible.
It's sort of necessary in a creative field where you want a lot of interaction between the designers and the developers.
For most big companies this is just a cost cutting measure and it doesn't work at all though. Recently I went to a big corporation with this set-up.
Everyone walked around the building for 30 minutes trying to find a spot.
They also had meeting rooms which were about the size of 1 cubicle and could barely fit 4 chairs

If you left to make a call you had to do that in the designated 'telephone area' or a meeting room as to not disturb the others but that meant that you had to abandon your work space so someone else could use it.
So after a 5 minute call people would spend another 30 minutes trying to find a new spot to work because the telephone area's were in a different part of the building.
Some of the people we worked with had just moved their desks to an empty office and basically made that their own office.

It was corporate hell, so I'm not surprised the company literally doesn't get anything done anymore.
All the walls were painted in this weird purple color too and they barely had any windows in some places. It was awful.