WPP is embarking on one of the most radical restructures in its history as it looks to counter the growing disruption of AI, merging major agency brands, cutting costs and repositioning itself as what it calls a “simpler, lower-cost, AI-enabled business”.
The London-listed group plans to deliver £500m of annualised cost savings by 2028 under its new multi-year strategy, “Elevate28”, at a cash cost of around £400m over two years.
A significant proportion of the savings are expected to come from job cuts, although the company has not disclosed how many roles will be affected.
As part of the shake-up, WPP will bring together creative networks including Ogilvy, VML and AKQA under a unified “WPP Creative” operating model. The group will also restructure into four core units (Media, Creative, Production and Enterprise Solutions) across four regions.
Chief executive Cindy Rose said the group’s recent underperformance had been driven by “excessive organisational complexity” and a lack of integration, adding that the changes were designed to stabilise performance in 2026, return to organic growth in 2027 and accelerate from 2028 onwards.
WPP reported a 3.6 per cent like-for-like drop in revenue to £13.6bn in 2025, while profit before tax fell 26 per cent to £1.1bn. Reported operating profit margin dropped to 2.8 per cent, and the dividend was cut to 15p per share.
The group has lost significant market value in recent years and has fallen behind rivals such as Publicis Groupe in global revenue rankings.
At the heart of the strategy is WPP Open, described as its “agentic marketing platform”, designed to connect media, creative, production and data through a single AI-enabled layer.
The creation of WPP Enterprise Solutions, a standalone unit focused on AI transformation, commerce, CRM and technology services, signals a broader shift in how agencies are positioning themselves.
For retail marketers, it’s clear that AI isn’t just improving efficiency in media buying or content production, but actively reshaping marketing operating models. Retail brands are increasingly seeking partners that can integrate data, commerce and creativity in real time, rather than operating across siloed agency relationships.
The move also comes as industry bodies grapple with AI’s impact on consumer trust.
The Incorporated Society of British Advertisers (ISBA) recently launched a framework for AI-enabled content creation, urging brands to consider governance and credibility as they scale adoption.
As AI tools become embedded across campaign planning, content generation and customer experience, the pressure on agencies to simplify structures, reduce duplication and invest in data capabilities is intensifying.
WPP’s overhaul is a prime example of the scale of change sweeping through the sector, and the speed at which marketing organisations are hoping to adapt.
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