The world’s largest advertising group just announced a restructuring that will include the loss of as many as 3,500 jobs, with about 1,000 new hires to be made to shore up senior leadership. Reuters and Fortune report that the moves are in the works at WPP.
The moves are part of plans by new WPP CEO Mark Read to try to steer the company back to growth.
Fortune notes that WPP, the world’s largest holding company for advertising and PR agencies, has been struggling for a while, culminating in an exodus of key clients and a 40% decline in market value. Read’s turnaround plans include new creative staff and big cost cuts, with office shutdowns and layoffs.
The company reportedly has about 134,000 employees in 110 countries.
Reuters quotes Read saying: “WPP has become too unwieldy, with too much duplication. It is not always as focused or as fleet of foot as it needs to be to satisfy the needs of all our clients around the globe.”
Fortune adds: “WPP owns such storied agencies as J. Walter Thompson and Ogilvy. The changes are expected to cost about $377 million and begin saving $345 [million] a year by 2021.”