"Omnicom said on Monday it will lay off more than 4,000 employees and fold several well-known advertising agency brands after its $13 billion acquisition of rival Interpublic Group. The advertising industry faces a serious threat as artificial intelligence reshapes creative production and tech giants such as Meta make it easier for businesses to churn out ads at scale and speed."
"The company said creative agency DDB, founded in 1949, and creative marketing agency MullenLowe will be integrated into Omnicom's TBWA. FCB, one of the largest global ad agency networks owned by IPG with roots dating back to 1873, will be absorbed into Omnicom's BBDO, according to the company. Omnicom said more than 4,000 jobs would be cut as part of the IPG integration, mainly in administrative roles but some leadership positions will also be impacted."
Omnicom completed a $13 billion acquisition of Interpublic Group in November. The company will lay off more than 4,000 employees and fold several well-known advertising agency brands as part of the integration. Creative agency DDB and creative marketing agency MullenLowe will be integrated into Omnicom's TBWA, and FCB will be absorbed into Omnicom's BBDO. The cuts are mainly in administrative roles, with some leadership positions affected; after reductions roughly 85% of roles will be client-focused and 15% administrative. Omnicom projects annual cost savings surpassing $750 million to respond to AI-driven creative shifts and competitive pressure from Publicis, WPP, and tech platforms.
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