WPP shares plunge 11% as new CEO launches major restructure

WPP’s new CEO Cindy Rose has launched a comprehensive review that could lead to job cuts across the advertising giant’s 100,000-person workforce after issuing another profit warning. The former Microsoft executive condemned the company’s “unacceptable” performance as WPP struggles to retain clients and compete with rivals’ AI and data capabilities, having already lost its position as the world’s largest ad agency by revenue to Publicis last year.

What you should know: Rose is implementing a sweeping restructure to transform WPP into a “much simpler” business focused on technology integration and cost efficiency.

• The company now expects revenue less pass-through costs to fall between 5.5% and 6% in 2025, worse than previous forecasts of a 3% to 5% decline.
• Headline operating profit margin is projected at about 13%, below the bottom of its previous range.
• WPP shares plunged another 11% on Thursday to 318p, having already lost more than half their value since the start of 2025.

The big picture: WPP’s struggles highlight the broader challenges facing traditional advertising agencies as they compete against tech-savvy rivals equipped with advanced AI and data analytics capabilities.

• The company has been hemorrhaging clients while failing to keep pace with the technological transformation reshaping the advertising industry.
• Rose’s appointment in September marked a significant leadership change, replacing Mark Read, a 30-year company veteran.

What they’re saying: Rose acknowledged the severity of the situation and outlined her transformation strategy.

• “I acknowledge that our recent performance is unacceptable and we are taking action to address this,” Rose said.
• “To deliver performance improvements, we will position our offering to be much simpler, more integrated, powered by data and AI, efficiently priced and designed to deliver growth and business outcomes for our clients.”
• She emphasized “dramatically simplifying how we organise ourselves internally, as well as building a high-performance team culture.”

Why this matters: The restructuring represents a critical inflection point for one of the advertising industry’s most established players as it attempts to reinvent itself for the AI era.

• Rose’s technology background from Microsoft positions her to potentially bridge the gap between traditional advertising services and modern data-driven capabilities.
• The outcome could signal whether legacy advertising giants can successfully transform or will continue losing ground to more technologically advanced competitors.

What’s next: WPP plans to provide additional details about its transformation strategy early next year, with Rose expressing confidence despite acknowledging the significant work ahead.

• “We know what it takes to win: we are optimistic, energised and confident that we’re building the right plan and the right culture to secure a bright future for WPP, our people, our clients, and our shareholders.”