WPP Faces Job Cuts Amid Struggles Under New Leadership

WPP, the prominent advertising group, is facing potential job losses as Cindy Rose, the newly appointed CEO, has initiated a review aimed at revitalizing the company's performance following a recent profit warning. Announced on Thursday, this review is a direct response to what Rose described as "unacceptable" performance amidst a growing trend of clients leaving WPP and increasing competition from rivals leveraging advanced AI and data analytics.

Once the world’s leading advertising agency by revenue, WPP lost its top position to Publicis last year. Rose emphasized her commitment to transforming WPP into a "much simpler" organization, one that aggressively incorporates technology to drive growth. This shift raises concerns about potential job cuts among its global workforce of approximately 100,000 employees.

In a significant development, WPP revealed that its headline operating profit margin would be lower than previously anticipated. This announcement caused a sharp decline in the company’s shares, which plummeted by 16% on Thursday to around 302p, marking the lowest share price since 1998. WPP had already issued a profit warning in July, and its shares have dropped more than 60% since the beginning of 2025.

Upon taking the helm in September after six years on WPP's board, Rose acknowledged the pressing need for change. "I acknowledge that our recent performance is unacceptable and we are taking action to address this," she stated. Her strategy involves simplifying WPP's offerings, making them more integrated, and powered by data and AI. She aims to enhance efficiency in pricing and deliver improved outcomes for clients.

WPP has revised its expectations for “revenue less pass-through costs,” which factors in fees paid to external suppliers. The company now predicts a decline of between 5.5% and 6% in 2025, a downward adjustment from the earlier forecast of a 3% to 5% drop. The estimated headline operating profit margin is projected to be about 13%, slightly below previous estimates.

Rose’s appointment comes as part of a broader effort to implement substantial restructuring intended to revitalize the struggling London-listed advertising giant. She succeeded Mark Read, who dedicated three decades to WPP. Rose expressed optimism about the company’s future, stating, "There is a lot to do and it will take time to see the impact, but in my first 60 days we are already moving at pace with some initiatives already announced and more to come."

As WPP embarks on this transformative journey under Cindy Rose's leadership, the focus on integrating advanced technology and simplifying operations may be crucial for regaining its competitive edge in the advertising landscape. While the road ahead is fraught with challenges, Rose’s confidence in building a brighter future for WPP, its employees, clients, and shareholders is palpable. The upcoming months will reveal how effectively these initiatives translate into improved performance and stability for one of the advertising industry's giants.