WPP shrinks workforce as clients rein in marketing budgets

WPP has accelerated its restructuring programme by cutting more than 1,200 jobs in the first half of 2026 as the advertising group seeks to protect profitability amid slowing client spending and the rapid adoption of artificial intelligence across the marketing industry.

The London-listed company reduced its workforce by 1,267 employees during the six months to June, leaving it with 97,388 staff. Over the past year, WPP has eliminated more than 6,000 roles as part of a broader efficiency drive aimed at lowering costs and simplifying the business.

The reductions helped cut staff costs by 5.9 per cent to £3.47 billion, but were not enough to offset weaker trading conditions.

Pre-tax profit fell 7.7 per cent year-on-year to £277 million, while revenue less pass-through costs — the company’s preferred measure of underlying sales — declined 5.6 per cent to £4.75 billion.

The downturn reflected weaker demand from several of WPP’s largest client sectors. Like-for-like revenues from telecommunications, media and entertainment fell 14.8 per cent, while financial services declined 13.4 per cent and technology clients reduced spending by 9.2 per cent.

The results underline the pressures facing the global advertising industry as companies rein in marketing budgets while simultaneously investing in AI-driven tools that are reshaping creative production, data analysis and campaign management.

WPP has responded by accelerating investment in artificial intelligence, expanding its Open Intelligence data platform and strengthening partnerships with Google, Meta and Amazon Web Services to integrate generative AI capabilities into its services.

Earlier this year, the group said it planned further job reductions and potential asset disposals as it works towards delivering £500 million of annual savings by 2028.

Chief executive Cindy Rose said the first-half performance was broadly in line with expectations, adding that although legacy account losses continued to weigh on revenues, underlying trading improved during the second quarter.

Investors responded positively to the update, sending WPP shares more than 20 per cent higher in early trading, suggesting the market believes the group’s cost-cutting strategy and AI investment programme could begin to stabilise performance despite a challenging backdrop for the global advertising sector.