WPP Appoints New CEO Cindy Rose Amid 19% Stock Drop

WPP, the British advertising giant, has announced the appointment of Cindy Rose, a member of the board of directors, as the new Chief Executive Officer. This decision comes just a day after the company issued a significant profit warning, highlighting the severe challenges it currently faces. Rose, a former Microsoft executive, has been tasked with leading WPP out of its current difficulties.

Rose, who has been a board member since 2019, will take over from Mark Read, the outgoing CEO, on September 1. Read's departure has been brought forward by four months. WPP's stock price had plummeted to a 16-year low following the profit warning on Wednesday, but it rebounded on Thursday.

Rose has a nine-year tenure at Microsoft, where she rose to the position of Chief Operating Officer for Global Enterprise Business. Prior to Microsoft, she held roles at Vodafone and Virgin Media. WPP's Chairman, Philip Jansen, praised Rose's expertise in digital transformation, noting her success in helping large global enterprises leverage artificial intelligence to create new business models and revenue streams.

"Our industry is undergoing fundamental change, and the macroeconomic environment is full of uncertainty. Her expertise in this area will bring immense value to WPP," Jansen said.

WPP is currently facing significant challenges, including the loss of several major clients, reduced client spending, and a dwindling number of new business opportunities. These issues collectively led to the downgrading of WPP's profit expectations and a 19% drop in its stock price on Wednesday.

Last year, WPP lost its position as the world's largest advertising group to France's Publicis Groupe. Additionally, the transformative impact of artificial intelligence has put WPP under considerable strain, as AI enables clients to independently manage more of their marketing activities.

In response to these challenges, Rose stated, "We have built and will continue to enhance our market-leading AI capabilities, while maintaining our unparalleled reputation for creative excellence and our top-tier client roster."