WPP to cut 3,500 jobs in ‘radical’ restructure plan
WPP is axing 3,500 jobs worldwide under plans to slash costs by £275million a year as it looks to turn around its fortunes.
The move will largely affect administration roles as the advertising giant looks to merge 100 offices and shut a further 80 sites.
But WPP – which employs 14,000 staff in the UK out of 130,000 globally – will also create 1,000 creative jobs.
It comes as part of a threeyear overhaul that will cost WPP £300million, but save £275million annually by 2021.
WPP, which has been rocked by the departure in
April of founder and chief executive Sir Martin Sorrell, also plans to shed under-performing parts of the business.
It aims to reinvest around half of its savings into the business over the next two years as it looks to reposition itself as a “creative transformation company”.
WPP was dealt a major blow earlier this year when it lost a significant chunk of its work with car giant Ford.
But the company added that, for the current 2018 results, full-year underlying like-for-like revenues are now expected to fall by close to 0.5 per cent, which is better than the 1 per cent predicted in October. WPP’s new chief executive, Mark Read, said he was taking a “radical evolution” approach.
He said: “We are fundamentally repositioning WPP as a creative transformation company with a simpler offer that allows us to meet the present and future needs of clients.”
He added: “The restructuring of our business will enable increased investment in creativity, technology and talent, enhancing our capabilities in the categories with the greatest potential for future growth.
“As well as improving our offer and creating opportunities for clients, this investment will drive sustainable, profitable growth for our shareholders.”
WPP shares closed up 39p to 844p.