WPP cuts workforce

British advertising giant WPP reduced its global workforce to 104,000 employees by June 30, 2025, marking a substantial decrease from 111,000 a year earlier. The 7,000-person reduction, announced alongside the company's interim results on August 7, 2025, represents a 6.3% decline in headcount as the world's largest advertising company grapples with challenging market conditions.

According to the interim results document, WPP's headcount reduction of 3.7% since the beginning of 2025 aligns with the company's like-for-like revenue decline of 4.3%. The cuts form part of broader cost-reduction measures as the company faces "macro uncertainty leading to cuts to client spending combined with slower net new business," according to company statements.

Financial performance drives workforce adjustments

WPP's interim results revealed significant financial pressures that necessitated the workforce reductions. Revenue fell 7.8% to £6.66 billion in the first half of 2025, while revenue less pass-through costs declined 10.2% to £5.03 billion. The company's headline operating profit margin compressed to 8.2%, down from 11.5% in the previous year.

Mark Read, Chief Executive Officer of WPP, described the first half as "challenging" given pressures on client spending and a slower new business environment. "We have, however, made significant progress on the repositioning of WPP Media, simplifying its organisational model to increase effectiveness and reduce costs," Read stated in the results announcement.

Severance costs totaled £86 million in the first half, up significantly from £36 million the previous year. The company indicated that severance action taken in the second quarter alone would generate more than £150 million of annualized gross cost savings from 2026.

WPP Media restructuring accounts for significant portion

The workforce reduction particularly affected WPP Media, the company's global media operations unit. WPP Media has undergone significant organizational changes as part of CEO Brian Lesser's strategic repositioning plan announced earlier in 2025.

The restructuring at WPP Media involved creating a more client-centric organizational model and establishing centralized leadership with newly reorganized teams including Chief Financial Officer, Chief People Officer, and Chief Operating Officer positions. The company launched Open Media Studio as a single platform across its two largest markets, the US and UK, while supporting key new client wins in global markets.

WPP Media also acquired InfoSum during the period and launched Open Intelligence, described as reaching 5 billion consumers and enabling new product opportunities and enhanced partnerships. These technological investments aim to strengthen the unit's data and artificial intelligence capabilities despite the workforce reduction.

Historical context of WPP employment levels

WPP's current headcount of 104,000 represents a significant shift from its historical peak. The company employed approximately 114,000 people globally in 2023, according to Statista data. Prior workforce reductions included 5,000 roles lost during the first half of 2020 due to pandemic impacts.

The geographical distribution of WPP's workforce shows concentration in key markets, with the Asia Pacific region historically employing approximately 32,000 people, while North America and Western Continental Europe each accounted for roughly 23,000 employees as of 2023.

The current reduction affects the company's position as one of the "Big Four" agency groups alongside Publicis, Interpublic Group, and Omnicom Group. Industry consolidation pressures have intensified with potential mergers among competitors creating additional competitive dynamics.

Technology investments amid cost reduction

Despite workforce reductions, WPP continued investing in technology and artificial intelligence capabilities. The company reported that 69,000 users, representing approximately 85% of client-facing staff, actively used WPP Open, its AI-powered platform. This represents growth from roughly 60% adoption in March 2025.

New partnerships announced during the period included collaborations with Vercel, TikTok, and Criteo, along with new products including Reputation Capital and Decipher Tech. The company maintained its annual investment of £300 million in technology, AI, and data capabilities.

WPP Open's adoption has contributed to a 5-10% uplift in new business conversion rates for top 50 clients compared with non-WPP Open pitches, according to company data. The platform represents a central component of WPP's strategy to differentiate its services through technology integration.

Strategic outlook and leadership transition

The workforce reduction occurs during a leadership transition period for WPP. Mark Read announced his departure as CEO, with Cindy Rose, a Microsoft executive, scheduled to succeed him on September 1, 2025. Rose will inherit the challenge of managing continued cost pressures while maintaining competitive positioning.

WPP maintained its full-year 2025 guidance for like-for-like revenue less pass-through costs decline of 3-5%. The company expects headline operating margin to decline 50-175 basis points year-over-year, excluding foreign exchange impacts.

The Board decided to reduce the interim dividend to 7.5 pence per share, down from 15.0 pence the previous year. This reduction provides financial flexibility for the incoming CEO to review strategy and capital allocation policies while acknowledging ongoing challenges in the advertising market.

Industry implications for marketing community

The workforce reduction at WPP reflects broader challenges facing traditional advertising agencies as clients increasingly bring marketing functions in-house and technology platforms enable direct advertising capabilities. Media agencies face declining satisfaction ratings despite increased budgets in areas such as retail media.

Programmatic advertising platforms continue gaining market share, with industry data indicating 72% of marketers plan to increase programmatic investment in 2025. Connected TV represents a primary growth driver, though traditional brand metrics require enhancement with performance-driven commerce metrics.

The employment reduction demonstrates the industry's ongoing transition from labor-intensive service models toward technology-enabled solutions. WPP's emphasis on AI and data capabilities suggests future workforce requirements will prioritize technical skills over traditional account management roles.

Timeline

• February 2025: Brian Lesser announces WPP Media repositioning plan
• March 2025: WPP Open reaches 60% adoption among client-facing staff
• June 30, 2025: WPP headcount reduced to 104,000 employees
• July 9, 2025: WPP issues trading update warning of challenging conditions
• July 2025: Mark Read announces departure as CEO
• July 29, 2025: Criteo and WPP Media partnership launched
• August 7, 2025: WPP announces interim results and workforce reduction
• September 1, 2025: Cindy Rose scheduled to become CEO

Related stories

• Media agencies face satisfaction decline as retail budgets surge 20%
• Omnicom and IPG merger talks signal major advertising industry consolidation

Key Terms Explained

Headcount Reduction: The workforce reduction from 111,000 to 104,000 employees represents a strategic response to financial pressures and market conditions. This 7,000-person decrease reflects industry-wide trends toward operational efficiency and technology-enabled service delivery. The reduction particularly affected WPP Media operations, where organizational restructuring aimed to create more client-centric models while reducing costs.

WPP Media: The company's global media operations unit underwent significant transformation during 2025, including leadership restructuring, platform consolidation, and strategic acquisitions. WPP Media's repositioning under CEO Brian Lesser involved creating centralized leadership teams and launching Open Media Studio as a unified platform across key markets. The unit's evolution reflects broader industry shifts toward data-driven, AI-enhanced media services.

Revenue Decline: WPP's 7.8% revenue drop to £6.66 billion demonstrates the challenging market environment facing traditional advertising agencies. The decline stems from reduced client spending, slower new business acquisition, and competitive pressures from technology platforms enabling direct advertising. This financial pressure directly correlates with workforce reduction decisions and strategic restructuring initiatives.

Severance Costs: The £86 million in severance expenses, up from £36 million previously, represents immediate costs for long-term savings. These expenditures enable WPP to generate over £150 million in annualized cost savings from 2026, demonstrating the financial logic behind workforce reductions. Severance costs particularly concentrated at WPP Media during its organizational transformation.

Operating Margin: The compression from 11.5% to 8.2% headline operating profit margin illustrates financial pressure beyond revenue decline. This 330 basis point decrease reflects negative operating leverage, where fixed costs remain constant while revenue decreases. The margin pressure necessitated cost reduction measures including workforce adjustments and operational efficiency improvements.

Technology Investment: WPP's continued £300 million annual investment in AI, data, and technology capabilities demonstrates strategic commitment despite cost pressures. The company prioritized technology development through acquisitions like InfoSum and platform enhancements to WPP Open. These investments aim to differentiate services and improve operational efficiency through automation and enhanced capabilities.

WPP Open: The AI-powered platform achieved 69,000 users representing 85% of client-facing staff, up from 60% in March 2025. WPP Open serves as the central technology infrastructure connecting creative, media, and data capabilities. The platform's adoption correlates with 5-10% improvement in new business conversion rates, justifying continued investment during cost reduction periods.

Client Spending: Reduced advertiser budgets across sectors created the primary driver for WPP's financial challenges and workforce adjustments. Macro uncertainty led clients to defer or reduce marketing investments, particularly affecting discretionary spending categories. The spending environment reflects broader economic concerns and shifting advertiser priorities toward measurable performance outcomes.

Market Competition: Intensified rivalry from Publicis, potential Omnicom-Interpublic consolidation, and technology platform growth created additional pressure on WPP's market position. Competition drove the need for enhanced technological capabilities and operational efficiency improvements. The competitive landscape influenced strategic decisions including workforce optimization and technology investment priorities.

Leadership Transition: Mark Read's departure and Cindy Rose's incoming appointment as CEO occurs during critical transformation period. The leadership change provides opportunity to reassess strategy, capital allocation, and operational priorities while maintaining momentum on technology investments. Rose's Microsoft background suggests continued emphasis on technology integration and digital transformation initiatives.

Summary

Who: WPP, the world's largest advertising company, reduced its global workforce from 111,000 to 104,000 employees, affecting 7,000 positions across the organization.

What: The company announced a 6.3% workforce reduction alongside declining financial performance, including 7.8% revenue decline and compressed operating margins, while implementing strategic restructuring of WPP Media operations.

When: The headcount reduction occurred through the first half of 2025, with final numbers reported as of June 30, 2025, and officially announced during interim results on August 7, 2025.

Where: The workforce reduction affected WPP's global operations across more than 100 countries, with particular impact on WPP Media's organizational structure in key markets including the US and UK.

Why: Financial pressures from client spending cuts, slower new business environment, and macro uncertainty drove the workforce reduction as part of broader cost-saving measures expected to generate over £150 million in annualized savings from 2026.