WPP unveils restructuring plan amid profit decline
WPP has revealed plans to achieve £500 million in cost savings through a wide-ranging restructure that will involve redundancies and the consolidation of its business units, reports BritPanorama.
The global advertising and communications giant announced its strategic overhaul, which it anticipates will take a number of years to complete. Chief executive Cindy Rose attributed the company’s recent “underperformance” to “excessive organisational complexity.”
Rose acknowledged the challenges, stating, “While disappointing, I see huge potential as these issues are all within our power to fix and we’re already making great progress.” This announcement follows WPP’s disclosure that its profits fell by more than 70% last year.
The restructure will transform WPP into a single entity, moving away from its current model as a holding company overseeing numerous operating divisions. The business will be reorganised into four core units: WPP Media, WPP Creative, WPP Production, and WPP Enterprise Solutions, covering four global regions: North America, Latin America, Europe, and Asia Pacific.
All four divisions will be integrated through WPP Open, an artificial intelligence-driven marketing platform. The changes are expected to lead to job losses, targeting duplicated positions to simplify its corporate structure.
While the company has not specified which roles will be affected or the exact number of positions at risk, the office in London’s South Bank and a campus in Manchester are included in the potential cuts. WPP aims to achieve annual cost savings of £500 million by 2028 and reported having reduced its workforce by approximately 4,000 since the beginning of the year.
Most redundancies were concentrated within WPP Media, with further reductions achieved through natural attrition to manage expenses in challenging market conditions.
Alongside the strategic announcement, WPP posted an operating profit of £382 million for 2025, a 71% decrease from the previous year. Underlying revenues fell by 5.4% year-on-year, particularly impacted in the UK due to client departures and budget reductions.
Rose, who joined WPP as CEO last year, has been leading a transformation that includes securing new client agreements such as with the UK Government, Pizza Hut, Major League Soccer, Reckitt, and Jaguar Land Rover for international assignments.
Rose reiterated her belief in WPP’s potential, citing, “As our clients navigate uncertainty, AI disruption and macro-volatility, we’re looking ahead with a clear and focused mission: to be the trusted growth partner for the world’s leading brands in the era of AI.”
Editorial Note: The restructuring announced by WPP reflects a broader trend in the advertising industry, responding to declining profits and shifting market dynamics. As companies increasingly lean towards efficiency and integration, WPP’s approach indicates a pragmatic adaptation to changing client needs and evolving technologies. The emphasis on AI in marketing strategies further highlights the critical intersection of technology and traditional business models as firms navigate future uncertainties.
