WPP: Advertising giant cut its workforce by 7,000 over past year
Global advertising giant WPP has revealed the group cut its workforce by 7,000 over the past year as it saw profits plunge in a “challenging” first half.
The firm said its worldwide workforce shrank to 104,000 at the end of June, down from 111,000 a year earlier after slashing costs in the face of tougher trading.
It reduced roles by 3.7 per cent in the first six months of 2025, it added.
The group reported pre-tax profits tumbling to £98m for the six months to June 30, down from £338m a year earlier.
WPP’s outgoing chief executive Mark Read, who will be replaced by former Microsoft UK boss Cindy Rose on September 1, said: “It has been a challenging first half given pressures on client spending and a slower new business environment.
“We have, however, made significant progress on the repositioning of WPP Media, simplifying its organisational model to increase effectiveness and reduce costs.”
The group halved its interim dividend payout to 7p per share, saying it would allow “our incoming CEO to review the group’s strategy and capital allocation policy while maintaining financial flexibility”.
“The priority is to drive sustainable growth supported by an appropriate level of financial flexibility while balancing returns to shareholders,” he added.
WPP – which owns agencies such as Ogilvy and VML – warned over annual profits in July as clients cut spending amid global economic uncertainty, with trading worsening over the second quarter.
It saw revenues fall 7.8 per cent in the first half, down 2.4 per cent on a like-for-like basis, with the decline picking up pace to 5.8 per cent in the second quarter.
WPP said it continues to expect full-year results in line with the lowered guidance given in July. Mr Read is leaving after seven years at the helm and a three-decade career at WPP. His successor has worked at Microsoft for nine years, most recently as its chief operating officer for global enterprise. She was previously the president of the technology giant for Western Europe, and the chief executive of the UK business.
Recruiting Ms Rose is seen as aligning with WPP’s efforts to sharpen its focus on artificial intelligence (AI) and digital transformation, in a bid to keep up with rapidly evolving demands.
Victoria Scholar, Head of Investment, interactive investor, said: “WPP faces an uphill battle amid the macroeconomic uncertainty and after the loss of some major clients. Winning new business has been challenging and its share price has struggled as a result - Publicis overtook WPP to become the world’s largest ad agency last year. WPP recently appointed Cindy Rose as CEO, replacing Mark Read from 1 September. Ms Rose boasts an impressive CV having spent nine years at Microsoft rising to Chief Operating Officer. Her tech background will be valuable to WPP which is trying to navigate a rapidly changing ad landscape with the swift ascent of very high-quality AI content that risks cannibalising WPP’s core offering. WPP hopes that Ms Rose will lead the company to integrate AI in a way that boosts its business, rather than having AI steal it.”