TLDR: Global advertising giant WPP has announced a reduction of 7,000 jobs worldwide over the past year, bringing its total headcount to 104,000 by June 30, 2025. This move comes as the company grapples with a challenging first half of 2025, marked by a 7.8% drop in reported revenue and a substantial plunge in pre-tax profits. The cuts are part of a broader cost-saving initiative and a strategic pivot towards AI and data platforms, alongside a leadership transition with Cindy Rose set to take over as CEO.
London, UK – WPP, the world’s largest advertising company, has revealed a significant restructuring of its global operations, including a reduction of 7,000 jobs over the past year. This strategic move, which saw the workforce shrink from 111,000 to 104,000 employees by June 30, 2025, is a direct response to a challenging economic environment and a notable slump in revenue.
The company’s interim results for the first half of 2025 paint a stark picture of the pressures facing the advertising behemoth. WPP reported a 7.8% decline in revenue on a reported basis, reaching £6,663 million, and a 2.4% drop on a like-for-like basis. Revenue less pass-through costs saw an even steeper decline of 10.2%, settling at £5.03 billion. Headline operating profit plummeted to £412 million, causing the headline operating margin to compress significantly from 11.5% to 8.2%. Pre-tax profits were particularly hard hit, tumbling to £98 million from £338 million a year earlier.
Mark Read, WPP’s outgoing Chief Executive Officer, who will be succeeded by former Microsoft UK boss Cindy Rose on September 1, 2025, commented on the challenging period. “It has been a challenging first half given pressures on client spending and a slower new business environment,” Read stated. He added, “We have, however, made significant progress on the repositioning of WPP Media, simplifying its organisational model to increase effectiveness and reduce costs.”
The workforce reduction, which represents a 3.7% decline in staff since the beginning of 2025, was largely concentrated within its WPP Media business. The company also utilized natural staff turnover to manage headcount. It’s worth noting that approximately 1,400 roles were divested with the sale of communications agency FGS Global in December of the previous year. The cost-cutting measures included substantial severance expenses, totaling £86 million in the first half of 2025, a significant increase from £36 million in the same period last year. WPP anticipates that severance actions taken in the second quarter alone will generate over £150 million in annualized gross cost savings from 2026.
The revenue decline was attributed to several factors, including broader global economic uncertainty leading to reduced client spending and a slower new business acquisition rate. Regionally, China experienced sharp revenue declines due to lost client assignments, while media agencies and global integrated operations faced double-digit revenue pressure. In contrast, North America and India showed more stable performance.
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Looking ahead, WPP’s strategic shift includes a broader focus on AI and data platforms, aiming for technology-driven efficiency to stabilize margins. The company also halved its interim dividend payout to 7p per share, a decision made to allow the incoming CEO, Cindy Rose to review the group’s strategy and capital allocation policy while maintaining financial flexibility. Read emphasized that “The priority is to drive sustainable growth supported by an appropriate level of financial flexibility while balancing returns to shareholders.” Despite these efforts, WPP’s shares have fallen to their lowest level in 16 years. The company has maintained its full-year 2025 guidance, expecting a like-for-like revenue less pass-through costs decline of 3-5% and a headline operating margin decline of 50-175 basis points year-over-year.
