WPP, the UK-based advertising and public relations company, is planning to reduce its workforce by up to 1,000 additional positions by the end of the year, according to a report published Tuesday by the Financial Times. The newspaper, citing individuals familiar with the company’s plans, stated the move is part of an accelerated restructuring program that also includes the sale of non-core business units and properties.
The planned staff reductions are an extension of a broader, multi-year strategy initiated by Chief Executive Officer Mark Read to streamline the company’s operations. WPP first announced its three-year turnaround plan in December 2018, which aimed to simplify its complex structure, reduce costs, and reinvest in creative and technological capabilities.
The original 2018 plan included a total restructuring charge of approximately £300 million and targeted annual savings of £275 million by the end of 2021. As part of that initiative, WPP had already outlined a net reduction of about 3,500 positions globally.
According to the Financial Times report, the newly planned cuts are in addition to those previously announced. The report also noted that WPP is looking to divest more of its assets and reduce its real estate footprint as it adapts to changes in the advertising industry and evolving workplace practices.
Since Read took leadership, WPP has undertaken significant structural changes to simplify its portfolio of agencies. These actions have included merging major agency networks, such as J. Walter Thompson with Wunderman to create Wunderman Thompson, and VML with Y&R to form VMLY&R. The company also sold a majority stake in its market research division, Kantar, in 2019.
The company has not issued a formal public statement in response to the Financial Times report. WPP is one of the world’s largest advertising conglomerates, employing over 100,000 people across its agencies, which include Ogilvy, Grey, and GroupM. The company, like others in its sector, has navigated a changing media landscape and increased competition from technology firms and consulting companies.
