Advertising firm WPP has reported a drop in like-for-like sales in the first quarter due to huge client losses.
Sales fell 2.8% in the period and revenue was only up by 0.9% to £3.58bn, the US market saw sales drop 8.5% and is their weakest area and like-for-like sales in the UK were also down by 0.9%.
Mark Read, chief executive said, “We continue to make good progress in implementing our three-year strategy to return WPP to sustainable growth.
“As anticipated, our first quarter trading update reflects the impact of certain significant client losses in 2018, in particular in the United States.
“Although we face a challenging year, especially in the first half, I am encouraged by how well our people, agencies and clients are responding to our new strategic direction.
“Our expectations for the full year are unchanged. Our newly formed agencies are showing initial signs of success in new business pitches.”
WPP are axing 3,500 jobs globally and plan to cut costs by £275m in a bid to turn the company around.