WPP announced an 18-month restructuring plan called Elevate28 aimed at saving £500 million by 2028, following a period of declining revenues and client losses. The plan involves scrapping WPP’s holding-company structure and reorganizing into four units: creative, media, production, and enterprise solutions. The company expects the restructuring to cost £400 million and include further job cuts by the end of the year, according to fortune.com.
The restructuring was initiated after Cindy Rose took over as CEO in October last year, inheriting a business that had recently issued a fresh profit warning and lost major clients such as Coca-Cola’s North American business and Mars’ snacking and pet care accounts. WPP also dropped out of the FTSE 100 index two months after Rose’s appointment. To support the transformation, WPP split its top HR role, appointing Mark Taylor as global chief people officer and Marie-Claire Barker as chief people officer for performance and culture, who is tasked with driving AI adoption and improving employee performance.
The Elevate28 plan marks a significant shift for WPP, which has faced pressure to adapt amid a challenging advertising market. The company’s move to replace its holding-company model with a streamlined structure aligns with broader industry trends toward operational efficiency and digital transformation. The focus on AI adoption and cultural change reflects the need to modernize workflows and enhance competitiveness in a sector disrupted by technology and shifting client demands.
Marie-Claire Barker, WPP’s chief people officer for performance and culture, emphasized the importance of enabling the transformation by changing how employees work. The company’s next major milestone will be the completion of the restructuring phase by 2028, with interim progress updates expected in its upcoming financial reports.