WPP is shaking up its business model - 3 key takeaways on what it means for staff
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WPP is shaking up its business model - 3 key takeaways on what it means for staff
"Rose is taking a sledgehammer to WPP's operating model and streamlining the company into four key units. The ad giant previously operated as a holding company, where an alphabet soup of different agencies - from creative to PR and production - largely worked in silos. WPP is also doubling down on AI and forming a new "enterprise solutions" division to help clients with their own AI transformations."
"The company's full-year revenue for 2025 fell 10.4% to £10.1 billion, around $13.7 billion, while its operating profit slumped more than 70% to £382 million, around $517 million. The company said it was hit by clients cutting back spending in sectors including tech, retail, and consumer goods."
"The company said it anticipates achieving cost savings of £500 million, about $676 million, by 2028 as part of the strategy. Rose, who took the helm of the ad giant in September, and WPP's chief financial officer, Joanne Wilson, held a call with reporters on Thursday morning about their "Elevate28" strategy."
WPP, a major British advertising holding company, is undergoing significant restructuring under new CEO Cindy Rose. The company is transforming from a siloed holding company model into four integrated key units and establishing a new enterprise solutions division focused on AI transformation services. This strategic shift aims to achieve approximately $676 million in cost savings by 2028. The restructuring comes as WPP faces substantial financial challenges, including a 10.4% revenue decline to £10.1 billion and a 70% drop in operating profit to £382 million in 2025. These declines stem from client spending cuts across tech, retail, and consumer goods sectors, alongside AI disruption and intensifying competition. The transformation strategy directly impacts WPP's 98,000 employees, with cost-cutting measures likely involving workforce reductions.
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