WPP, the advertising and marketing giant, reduced its workforce by 1,267 employees in the first six months of 2026, bringing its total staff count to 97,388. This 1.3% reduction is part of an ongoing cost-cutting strategy aimed at boosting profits and adapting to the increasing use of artificial intelligence in the industry. The company has seen its headcount decline by over 6,000 in the past year as it works to lower staff costs. WPP expects to achieve £500 million in annual savings by 2028 through these measures, which also include potential asset sales and operational simplification.
Despite the cost-cutting efforts, WPP reported a 7.7% drop in pre-tax profits to £277 million for the first half of the year. Revenue less pass-through costs, a key sales metric, also decreased by 5.6% to £4.75 billion. The decline was attributed to significant drops in like-for-like revenues from key sectors: telecoms, media, and entertainment fell by 14.8%; financial services clients by 13.4%; and the technology sector by 9.2%.
CEO Cindy Rose stated that the first-half performance met expectations and noted a sequential improvement in like-for-like growth in the second quarter, despite ongoing legacy account losses. WPP is investing in technology and AI, deploying its Open Intelligence AI-powered data service and expanding strategic partnerships with Google, Meta, and AWS to integrate generative AI tools. The company's restructuring plan, dubbed 'Elevate 28', aims to integrate its services across creative, media, production, and enterprise solutions, with job cuts being an inevitable part of reducing its cost base.
Chief Financial Officer Joanne Wilson indicated that while the savings largely come from headcount reductions, WPP plans to reinvest in new capabilities like commerce influencer marketing and advanced analytics, and hire more "AI-native" employees. This restructuring follows a challenging 2025, where revenue was £13.55 billion (down 8.1%) and profit after tax fell 30.1% to £738 million. Shares in WPP surged by 23% in early trading following the announcement, reflecting investor optimism for the turnaround strategy.
