WPP Cuts 7,000 Jobs Amidst Decline in Advertising Market

WPP, Britain's largest advertising group, has cut 7,000 jobs over the past year, with its global headcount dropping to 104,000. The company has also undergone a major restructuring, including the sale of PR firm FGS Global and the rebranding of its GroupM media division. WPP's operating profit almost halved to £221m, with revenues dropping 10% to £5bn. The ad group is halving its dividend to 7.5p per share.

WPP, Britain's largest advertising group, has reported a significant decline in its financial performance for the first half of 2025. The company's shares plunged by nearly 5% on Thursday, hitting a 16-year low, following the announcement of its strategic review under incoming CEO Cindy Rose [1]. The company reported a 10% drop in revenues to £5bn, with a 47.8% decline in operating profit to £221m [1].

Key financial highlights include a 4.3% decline in revenue less pass-through costs for the first half of 2025, and a 5.8% decline in the second quarter. Additionally, the company has reduced its global workforce by 7,000 over the past year, bringing the total headcount down to 104,000 [1]. These measures are part of a broader cost-cutting initiative that includes slashing staff incentives by 60% and reducing its freelancer budget by 13% [1].

WPP's strategic review, led by incoming CEO Cindy Rose, aims to address the company's financial challenges and reposition its business strategy. The review comes at a time when the company has been facing significant headwinds, including client losses from major brands like Mars, layoffs, restructuring, and a rocky rollout of its return-to-office mandate [1]. However, outgoing CEO Mark Read noted that the company has made "significant progress" in repositioning WPP Media, simplifying its organization, and reducing costs [1].

Institutional investors have shown mixed reactions to WPP's financial performance. Bank of New York Mellon Corp raised its holdings in WPP by 120.2% in the first quarter, while several other institutional investors have also increased their stakes in the company [2]. Analyst ratings for WPP have been mixed, with one report downgrading it to a "hold" rating and others maintaining "buy" and "underweight" ratings [2].

Despite the financial challenges, WPP has made notable strides in its digital transformation efforts. The company has reported a strong adoption of its WPP Open platform, with over 80% of client-facing employees actively using it. Additionally, WPP has welcomed top talent to strengthen its leadership team, including Beiu Shah from Accenture Song and Daniel Burra from RGA [3].

Looking ahead, WPP's strategic review will be crucial in navigating the current market uncertainty and positioning the company for future growth. The company's ability to adapt to changing market conditions and maintain its competitive edge will be key to its long-term success.

References:
[1] https://www.adweek.com/agencies/wpp-revenues-drop-58-as-it-announces-strategic-review/
[2] https://www.marketbeat.com/instant-alerts/filing-bank-of-new-york-mellon-corp-acquires-25359-shares-of-wpp-plc-nysewpp-2025-07-30/
[3] https://finance.yahoo.com/news/wpp-plc-wpp-h1-2025-170125472.html