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”.
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.”
Latest News
Study: Why The Australian Made Green & Gold Kangaroo Remains A Winner
The Australian Made logo has confirmed its international appeal, with new Horizon Consumer Science research finding 97 per cent of overseas consumers have a positive first impression of the iconic green and gold kangaroo. The research, which was carried out in six diverse export markets, found that more than two thirds (70 per cent) of […]
DDB Melbourne Wins Dulux’s Creative
Dulux has appointed DDB Melbourne as its sole creative and strategy agency following a competitive pitch. As a result of the appointment, the agency will lead strategy and creative for Dulux’s Decorative paints and coatings portfolio of brands, including Dulux, British Paints, and Berger. Dulux GM of Marketing, Strategy & Growth, Richard Hansen said: “Previously […]
Heckler Collaborates For OnePlus Nord’s Gray Ash Global Launch
Design and visual effects house Heckler has created the international launch video for global technology brand OnePlus’ newest offering: the OnePlus Nord special edition Gray Ash smartphone.
The Bottle-O Goes Musical In New Brand Campaign Via Channel T
Is it just us or is there a surprising number of booze ads on B&T today? You can almost get cirrhosis just reading.
Sapporo Brings Origins To Life In New Manga-Inspired Campaign Via Cummins&Partners
Alongside ironic T-shirts and thick rimmed spectacles, a love of Manga is essential for any budding agency creative.
Women in Media’s Cara Meade: “Find Clarity When There Is Chaos, Inspire Action Where There Is Lethargy”
Looking for a bit of Monday inspiration? Well, this is an essential read. Or, there's always the pub schnitzel.
“You Don’t Need To Be A Star To Have A Voice” Says Nike In New Voting Campaign
When a pair of trainers cost you 250 bucks it's only fair that Nike repays us with a new ad campaign every second day.
Lawyers Called In As Roxy Jacenko And Candice Warner Fight It Out Over Agency Contract
Oh no! The Roxy-Candice stoush has taken a decidedly ugly turn. Here's hoping Candice can keep control of her bowels.
“Daylight Robbery!” TV Reporter Gets His Phone Stolen During Live Cross
B&T has headlined this "daylight robbery" because, as you'll see, it features a robbery in daylight hours.
Leading Through Change: Why Network 10 Is All In On First Party Data
This includes both a video & stunning views of Sydney Harbour. It could only be bettered by being shat on by a seagull.
“A Weekend At Biden’s!” Presidential Hopeful Gets Hilariously Roasted In Spoof Ad
The presidential race to the bottom appears to have not quite reached the bottom in latest spoof attack ad.
ME Bank’s Candice Ayad: Leaders Of The Future Must Show Empathy, Vulnerability
Candice Ayad has worked with strong, powerful women leaders. But they lacked two fundamental qualities in their leadership, which, she says, will be critical within businesses going forward. The Women in Media Awards, presented by Are Media, are just days away, with the best of Australian media set to be recognised and celebrated for their […]
Independent Media Agencies Of Australia (IMAA) Launches Exclusive ‘Insights And Innovation’ Webinars
The IMAA unveils new ‘insights and innovation’ webinar which ideally will include both insights and innovations.
Three Ways Foxtel Impressed During Its Upfronts
GroupM's Nicola Lewis gives her take on Foxtel. And by that we mean the Upfronts, not its array of cooking programs.
The Five Values For Business Success
Here's a serious business article that hopefully ticks B&T's quota box for serious business articles.
Destination Gold Coast Launches Largest-Ever Tourism Campaign
Destination Gold Coast launches massive new campaign that sadly doesn't include out of control schoolies running amok.
Sunday TV Wrap: NRL Grand Final Pulls 2.1 Million, As The AFL Hits 2.9 Million
All B&T asks is you try and be kind to any Panthers or Cats supporters in the office today. If they bothered to turn up.
Heineken Launches ‘Cheers To All’ Marketing Campaign In Australia
This ad aims to tackle stereotypes in beer ads and it does by using very stereotypical attractive people.
Malcolm Turnbull Signs Petition Calling For A Royal Commission Into News Corp
If there was one thing guaranteed to get you written off by News journos it'd have to be signing a petition against it.
SecondBite Food Rescue Launches First National Campaign
This is not only for a good cause, but it features a cute kid with a bowl of spaghetti on his head. What's not to love?
KitKat Launches New Campaign Encouraging Aussies To ‘Give the Planet a Break’
This new KitKat initiative enables you to not only help save the planet but get fat while doing it.
Is B2B Marketing Missing Its Emotional Touch?
B2B marketers could learn a thing or two from their B2C colleagues, argues WP Engine VP APAC sales Mark Randall in this guest post. It surprises me how many B2B organisations are not quite hitting the mark when it comes to reaching their audience. When talking directly to businesses, many brands are missing an opportunity […]
Aussie Taxpayers Invested $50M In Failed Streaming Service
Fresh from buying the Australia Post board Cartier watches, the Aussie taxpayer is copping yet another shafting here.
Springfree Trampoline Unveils New TV ‘That’s Why We Got A Springfree’
Who didn't love the backyard trampoline as a kid? And many of us still carry the physical scarring from the adventure.
Women In Media’s Tara O’Keefe: “What Worked Yesterday Doesn’t Today And Certainly Won’t Tomorrow”
Here's some wise words from QMS’ Tara O’Keefe. Yet, not that wise that you'd have to have done chemistry for the HSC.
An “Intellectual Thickshake”: Ben Fordham Rips On Pete Evans, As Pete Viciously Fires Back
B&T's understanding is that Pete Evans is a chef? Why doesn't he pop on the apron and get back to cooking dinner?
Why The ACCC Has Its Eye On iMessage, Facebook Messenger And WhatsApp
Any bartender that served Rod Sims a chardonnay would NOT want to fall short of that line on the glass, that's for sure.
Burger King Trials Reusable Packaging
Here's a top initiative from Burger King that does kinda sound like a slightly tedious Craig Reucassel documentary.
Thursday TV Wrap: Gogglebox Takes Top Spot Despite Slight Dip
Gogglebox is almost like a scientific, neurological study into the human condition. Just with more bogans and ad breaks.
Borat Hijacks Landmarks Around The World To Promote Long-Awaited Sequel
Borat promotion comes to Bondi. And even it couldn't find any parking & got charged $9 for a tumeric almond milk latte.
