WPP slashes 7,000 jobs, posts half-year operating profit of £221m

WPP, Britain's largest advertising group, has cut 7,000 jobs over the past year, resulting in a global headcount of 104,000. The company's operating profit almost halved to £221m in the first half of the year, and revenues dropped 10pc to £5bn. WPP's share price has fallen by over half since the beginning of the year. The group is undergoing a major restructuring and expects to save over £150m from next year's cuts.

WPP, Britain's largest advertising group, has been grappling with financial challenges, leading to significant job cuts and a decline in operating profits. The company announced a strategic review under incoming CEO Cindy Rose, following a series of disappointing financial results.

In the first half of 2025, WPP's revenue dropped by 10% to £5bn, while operating profits almost halved to £221m. The company has cut 7,000 jobs over the past year, reducing its global headcount to 104,000. WPP's share price has fallen by over half since the beginning of the year, hitting a 16-year low [1].

The beleaguered holding company, which owns agencies including Ogilvy and VML, has also halved its dividend and is expecting to save over £150m from next year's cuts. Outgoing CEO Mark Read, who will be succeeded by Rose on September 1, said the company had made "significant progress" on repositioning WPP Media, simplifying its organization, and reducing costs. However, the company has been hit by client losses from brands such as Mars, layoffs, restructuring, and a rocky rollout of its return-to-office mandate [1].

Institutional investors have been boosting their holdings in WPP, with Bank of New York Mellon Corp increasing its position by 120.2% in the first quarter. The company's stock has received mixed ratings from analysts, with one report downgrading it to a "hold" and others maintaining "buy" and "underweight" ratings, resulting in an average rating of "Moderate Buy" [2].

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/