What's happened
WPP plans a major overhaul to counter AI disruption, including merging agencies and job cuts, aiming for £500m savings by 2028. The move follows revenue declines and industry staff exodus, with the company also facing legal scrutiny over client payments.
What's behind the headline?
WPP's restructuring reflects a strategic response to industry-wide challenges. The company aims to streamline operations by merging its creative agencies under the WPP Creative umbrella and cutting costs through job reductions. This move is driven by declining revenues—down 3.6% in 2025—and increased competition from rivals like Omnicom, which has doubled its cost-saving targets. The focus on AI-enabled services indicates WPP's recognition that technological innovation is critical for future growth. However, the plan's success depends on effective integration and execution, especially given the company's recent loss of market dominance and the ongoing legal issues revealing client payment data. The legal disclosures, including detailed client spending, could impact trust and transparency perceptions, potentially affecting client relationships. Overall, WPP's future hinges on its ability to adapt swiftly to technological shifts and industry consolidation, with the restructuring likely to reshape its global operations and competitive positioning.
What the papers say
The Guardian reports that WPP's plan includes merging agencies like Ogilvy, VML, and AKQA, aiming for £500m in annual savings by 2028, with significant job cuts expected. CEO Cindy Rose emphasizes simplifying the organization to foster growth amid revenue declines and client attrition. Reuters highlights that WPP's new division structure—WPP Creative, WPP Media, WPP Production, and WPP Enterprise Solutions—aims to restore organic growth by 2027, despite short-term declines. The NY Post reveals legal disclosures showing WPP paid over $9 billion from major clients like Google, Coca-Cola, and Ford, raising transparency concerns amid a lawsuit alleging improper profit practices. These contrasting perspectives underscore WPP's strategic overhaul, balancing cost-cutting, technological innovation, and legal scrutiny, as it seeks to regain market relevance.
How we got here
WPP, once the world's largest advertising firm, has struggled with client retention, revenue decline, and market position. The rise of AI and digital tools has accelerated industry upheaval, prompting WPP to seek cost reductions and organizational simplification. The company’s history of dealmaking and recent performance issues have led to a strategic pivot.
Go deeper
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WPP is a British multinational communications, advertising, public relations, technology, and commerce holding company headquartered in London, England. It is considered the world's largest advertising company, as of 2019.
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Cindy Helen Rose OBE is an American-British businesswoman, and the President of Microsoft Western Europe.