WPP Merges Agencies and Cuts Jobs: Radical Shift to Face AI Disruption
When global ad giant WPP announced a sweeping reorganisation in early 2026, it marked one of the boldest turns in the company’s long history. The plan pulls together creative teams, streamlines operations, and cuts costs as artificial intelligence reshapes the advertising world. As we walk through what’s happening, we’ll show why this matters for employees, clients, and the future of agencies everywhere.
What’s Behind WPP’s Shake-Up
- Company history: WPP is one of the world’s largest advertising groups, owning many agencies with separate brands and leadership.
- Revenue drop: Profits and revenue fell sharply in 2025, triggering major restructuring.
- New CEO plan: Cindy Rose launched Elevate28 to simplify operations and focus on AI-driven growth.
- Agency mergers: Top creative agencies like Ogilvy, VML, and AKQA combined under WPP Creative.
- Company structure: WPP reorganized into four units: Media, Creative, Production, and Enterprise Solutions.
- AI platform: WPP Open ties teams together and brings AI to campaign creation and analysis.
- Goal: Streamline teamwork, boost creativity, and improve client services in an AI-driven market.
The Job Cuts and Cost Savings
- Cost target: WPP aims for £500 million ($680 million) in annual savings by 2028.
- Job reductions. The workforce was reduced by about 4,000 roles in 2025, mostly in media operations.
- Reason: Cuts reduce duplication and prepare WPP for AI-driven efficiency.
- Focus: Simplify business, improve speed, and adopt AI tools across operations.
AI Disruption Is Reshaping Advertising
- AI capabilities: Tools can create campaigns, optimise ads, personalise messaging, and analyse data in minutes.
- Agency response: Some agencies use AI for efficiency; others offer new AI-powered services.
- WPP Open: Lets clients access AI toolenhancehances in-house marketing capabilities.
- Client trend: More clients bring work in-house or use AI-enabled services, challenging traditional agencies.
Impact on Employees and the Market
- Employee effect: Job cuts create uncertainty; some staff reassigned or retrained, AI skills now crucial.
- Industry trend: Other agencies like Omnicom also consolidate and cut jobs due to AI and changing client needs.
- Investor view: WPP’s shares fell in recent years, making restructuring urgent; some investors are skeptical about the speed of results.
What It Means for the Advertising World
- Industry shift: From siloed agencies to integrated, tech-driven models.
- AI centrality: AI now drives strategy, creative production, and client campaigns.
- Platform focus: Agencies move toward platform-based services instead of people-heavy labor.
- Data and automation: Greater reliance on analytics alongside creativity.
- Impact for brands: Faster campaign execution, real-time insights, and tighter integration across media.
- Impact for workers: Need for new skills and AI adaptability; tech competes with talent.
Conclusion
We from the industry see WPP’s restructuring as a landmark shift. Faced with lower profits, rising AI competition, and changing client behaviour, the company chose to simplify and innovate. Merging agencies and cutting jobs may be hard, but it also positions WPP to compete in the age of AI. The success of this strategy will matter for the future of advertising. Will other giants follow? Only Tim nd AI will tell.
FAQS
WPP is merging agencies, cutting duplicate roles, and introducing AI-driven platforms to modernize its services.
Exact numbers aren’t confirmed, but WPP aims to save £500 million annually by trimming overlapping positions.
Agencies like Ogilvy, VML, and AKQA are being merged under the new WPP Creative umbrella.
It signals a shift toward AI-led marketing, integrated agency models, and faster, tech-driven client solutions.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.