Ad giant Omnicom says its mega merger with IPG will lead to 4,000 layoffs

"Advertising agency giant Omnicom's $9 billion merger with fellow ad firm Interpublic Group officially got over the line last week. Now come the "synergies." Omnicom CEO John Wren said in media interviews on Monday that the total number of acquisition-related layoffs is expected to reach 4,000, with the majority of jobs to go by the end of December. A spokesperson confirmed the figure."

"Omnicom last year set out a "$750 million cost synergy target" related to the merger. The new Omnicom is now the largest advertising agency group in the world, with combined annual revenues exceeding $25 billion. By merging, Omnicom-IPG can reduce operating costs by consolidating systems. The new company can also leverage its collective client ad spending from the world's biggest brands to negotiate better deals with media owners and tech platforms."

Omnicom completed a $9 billion merger with Interpublic Group, creating the world's largest advertising agency group with combined annual revenues exceeding $25 billion. The companies expect about 4,000 acquisition-related layoffs, mostly by the end of December, representing roughly 3% of the combined 128,200 head count. The firms previously cut thousands of roles and set a $750 million cost synergy target tied to the merger. Consolidation will aim to reduce operating costs, consolidate systems, and leverage combined client ad spending to negotiate better media and tech deals. The merger will retire legacy creative brands DDB, FCB, and MullenLowe and could prompt contract reviews.

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