WPP Slices 3,500 Jobs Amid “Radical Evolution”

WPP Slices 3,500 Jobs Amid “Radical Evolution”

WPP will be cutting 3,500 of its 134,000 workforce as part of a major restructure.

According to media reports, the ad giant will also shut 80 offices globally and merge nearly 100.

Though, to make up for the 3,500 job cuts, WPP has promised it will hire 1,000 more creatives in the coming months.

Speaking on restructure, WPP CEO Mark Read said: “What we hear from clients is very consistent: they want our creativity, and they want us to help them transform their business in a world reshaped by technology.

“We are fundamentally repositioning WPP as a creative transformation company with a simpler offer that allows us to meet the present and future needs of clients.

“The restructuring of our business will enable increased investment in creativity, technology and talent, enhancing our capabilities in the categories with the greatest potential for future growth.

“As well as improving our offer and creating opportunities for clients, this investment will drive sustainable, profitable growth for our shareholders.

“We describe our approach as ‘radical evolution’: radical because we are taking decisive action and implementing major change; evolution because we will achieve this while respecting the things that make WPP the great company it is today.”

According to WPP, the company will incur cash costs for the restructuring of $519m over the next three years, which will include growing agencies, addressing under-performing units and streamlining operations.

Examples given of this streamlining includes, integrating VML and Y&R, and Wunderman and J. Walter Thompson, disposing of under-performing businesses and closing unsustainable operations.

As well as this, WPP will “further development of Campus co-locations” and “establish a consistent, shared service infrastructure to support 30 countries over the next five years”.

While WPP drafted losses of $519m, it stated the annual savings from the actions are anticipated to be $476m by the end of 2021.

The statement added, “WPP will reinvest approximately half of these savings in 2019 to 2021”.

The news comes as the ad giant debuted a “refreshed brand identity” as part of the “radical evolution”.

WPP_AUNZ_Lockup_RGB_Navy

According to WPP, the new and improved brand identity “reflects the company’s simplified offer to clients, consisting of four key pillars: communications, experience, commerce and technology”.

The identity was created by WPP agencies Superunion and Landor, with a bespoke iteration developed for the ANZ region.

The announcement follows ongoing tension between WPP and its ex-CEO and founder Martin Sorrell.

On Monday, B&T reported Sorrell was given a slap on the wrist from the CEO of WPP’s London-based The & Partnership, Johnny Hornby, who said Sorrell should stop “talking down” the company and its new CEO Mark Read.

“It’s disrespectful to them and makes him look small,” Hornby said.

“When he left in the summer the company badly needed a change of direction and strategy that Martin had not delivered and he should allow Mark to get on now unhindered,” he added.

Adding to the rancour, Sorrell recently described WPP has being a “car crash in slow motion” and that business had become too London-focused under Read.

Sorrell said: “Senior management haven’t been travelling enough and there’s a feeling that it’s Fortress Britain.”

 




Please login with linkedin to comment

Mark Read martin sorrell Restructure WPP

Latest News

It’s Friday Quiz Time Again!
  • Media

It’s Friday Quiz Time Again!

Take B&T's trivia quiz for your chance to win a $100 booze voucher and possible cirrhosis of a major internal organ.

by B&T Magazine

B&T Magazine
Big data technology and data science illustration. Data flow concept. Querying, analysing, visualizing complex information. Neural network for artificial intelligence. Data mining. Business analytics.
  • Marketing

SenateSHJ Launches New Trans-Tasman Practices

SenateSHJ has launched a new digital, data and insights capability designed to help clients tackle the growing complexity of communication challenges. SenateSHJ Digital, Data and Insights (DDI) will combine the firm’s existing Digital and Insights functions to create a Trans-Tasman capability focused on digital communication, and the generation and use of data to improve communication. […]

New BrandStory Format From Bonzai Allows 3x More Ad Space on Mobile
  • Media

New BrandStory Format From Bonzai Allows 3x More Ad Space on Mobile

Creative technology platform Bonzai has announced the launch of BrandStory – a new premium mobile ad format. BrandStory offers triple the ad space and 2.8 times greater time in view than single scroll ad formats, addressing the surging demand from brands worldwide for more real estate to drive real results by seamlessly intertwining awareness, exploration […]

B&T’s Search For Australia’s Greatest Ad Heads To Channel 7
  • Advertising

B&T’s Search For Australia’s Greatest Ad Heads To Channel 7

B&T went through the looking glass this morning, with editor-in-chief David Hovenden (above) appearing on Channel 7’s The Morning Show to get the general public involved in our search for Australia’s Greatest Ad. Hovenden chatted with Kylie Gillies and stand-in host Matt Doran about what makes a great ad and showcasing some of our favourites […]

by B&T Magazine

B&T Magazine
Opinion: The Tall Planner’s Kate Smither On The DBA Dilemma
  • Opinion

Opinion: The Tall Planner’s Kate Smither On The DBA Dilemma

The science is not in question – smarter people than I, with far more data, have codified it. The logic is not up for grabs…it makes sense that creating mental shortcuts to your brand keeps you at the top of your mind. Lead image: Kate Smither – Owner, The Tall Planner I wouldn’t even take […]

Opinion

by B&T Magazine

B&T Magazine
African woman using a cellphone in an office alone
  • Marketing

Ortto & Tall Bob Partner To Deliver Better SMS & MMS For Australian & NZ Businesses

Two Australian-born technology providers have joined forces to bring more power and choice to marketers in Australia and New Zealand with mobile messaging that is more local, cost-effective, and integrated. It’s a partnership that sees two Australian software companies come together to deliver a world-class mobile-first solution for marketers building data-driven, personalised, omnichannel campaigns. While […]

Slew Of New Hires At Snap Inc.
  • Media

Slew Of New Hires At Snap Inc.

Snap Inc. has announced a number of new recruits. B&T unaware if it positively impacted SEEK's share price.

Reddit Gets Playful Brand Refresh
  • Technology

Reddit Gets Playful Brand Refresh

This will be of interest to any Reddit fans, graphic designers or lovers of an orange so bright it burns the retinas.

Zitcha & Broadsign Partner To Drive Global In-Store Retail Media Market
  • Advertising

Zitcha & Broadsign Partner To Drive Global In-Store Retail Media Market

Zitcha and Broadsign have teamed up to integrate the Broadsign out-of-home (OOH) advertising platform with Zitcha’s retail media platform. The collaboration empowers retailers to maximise and monetise in-store digital display networks and enables advertising partners to easily view and book available in-store inventory and review campaign performance alongside the retailer’s other media channels. With the […]

Double Rainbouu & 7-Eleven Launch Exclusive Summer Fashion Label
  • Marketing

Double Rainbouu & 7-Eleven Launch Exclusive Summer Fashion Label

Today, 7-Eleven has announced a one-of-a-kind collaboration with the popular Sydney-based anti-resort wear label Double Rainbouu. Dropping tomorrow, December 1, just in time for summer, this limited-edition capsule will infuse the fashion brand’s rebellious spirit with a distinctly iconic 7-Eleven flavour. The unisex collection features five must-have styles comprising two signature Hawaiian shirts, a peaked cap, a bucket hat […]