WPP on Brink of Major Restructuring as New CEO Condemns 'Unacceptable' Performance
The advertising giant's shares have hit their lowest level since 1998 after the new chief executive, Cindy Rose, launched a review aimed at reviving the company's fortunes. Rose has vowed to transform WPP into a "much simpler" business with a greater focus on technology to drive growth.
However, the move comes with a warning: jobs could be at risk across the company's 100,000-strong workforce. The new CEO acknowledged that recent performance was "unacceptable" and said she would be dramatically simplifying internal operations to build a high-performance team culture.
Rose has also pledged to push harder into using technology and focus on cost efficiency. WPP now expects revenue less pass-through costs to fall by between 5.5% and 6% in 2025, marking a significant downgrade from previous forecasts.
The company's latest profit warning has sent shares tumbling 16%, with the figure falling below 302p for the first time since 1998. The decline is part of a broader trend, as WPP's shares have fallen more than 60% since the start of 2025.
Rose's comments have raised questions about the company's future and its ability to compete with rival agencies that are rapidly adopting AI and data capabilities. The new CEO has a steep task ahead of her, but vows to build a "bright future" for WPP, its people, clients, and shareholders.
The review is expected to be unveiled early next year, and it will be interesting to see how Rose implements her plans to turn around the company's fortunes. One thing is certain: WPP's future hangs in the balance as the new CEO sets out to transform the business into a more agile and tech-savvy operation.
The advertising giant's shares have hit their lowest level since 1998 after the new chief executive, Cindy Rose, launched a review aimed at reviving the company's fortunes. Rose has vowed to transform WPP into a "much simpler" business with a greater focus on technology to drive growth.
However, the move comes with a warning: jobs could be at risk across the company's 100,000-strong workforce. The new CEO acknowledged that recent performance was "unacceptable" and said she would be dramatically simplifying internal operations to build a high-performance team culture.
Rose has also pledged to push harder into using technology and focus on cost efficiency. WPP now expects revenue less pass-through costs to fall by between 5.5% and 6% in 2025, marking a significant downgrade from previous forecasts.
The company's latest profit warning has sent shares tumbling 16%, with the figure falling below 302p for the first time since 1998. The decline is part of a broader trend, as WPP's shares have fallen more than 60% since the start of 2025.
Rose's comments have raised questions about the company's future and its ability to compete with rival agencies that are rapidly adopting AI and data capabilities. The new CEO has a steep task ahead of her, but vows to build a "bright future" for WPP, its people, clients, and shareholders.
The review is expected to be unveiled early next year, and it will be interesting to see how Rose implements her plans to turn around the company's fortunes. One thing is certain: WPP's future hangs in the balance as the new CEO sets out to transform the business into a more agile and tech-savvy operation.