WPP cuts 1,267 jobs as revenue slides but shares rally on softer second quarter

WPP eliminated 1,267 positions in the first half of the year, trimming its global headcount by 1.3 per cent as the advertising group grapples with declining revenue. The London-listed company now employs 104,083 people, a 6.4 per cent reduction over the 12 months to June.

Staff costs fell by £216 million to £3.7 billion in the period, though the savings were partly absorbed by a £51 million restructuring charge and an incentive pool that more than doubled to £130 million. Revenue slipped more than three per cent to £6.4 billion, while the closely watched metric of revenue less pass-through costs dropped nearly five per cent to £4.7 billion. Operating profit declined 2.7 per cent to £398 million.

Shares jump on second-quarter resilience

Despite the headline declines, WPP shares surged 25 per cent after the update. The rally was driven by a second-quarter performance that showed a softer rate of decline than the first three months of the year, easing fears that the downturn was accelerating. The stock remains down more than 20 per cent over the past 12 months and the company dropped out of the FTSE 100 last year, having once been one of its largest constituents.

Turnaround plan enters stabilisation phase

Rose, a former Microsoft executive who took the helm in July 2024, unveiled the Elevate28 strategy in February. The programme targets £500 million of cost savings by the end of 2028 through eliminating duplication, reducing headcount and simplifying the agency portfolio. A review of non-core assets is expected to generate more than £200 million in 2026, with disposals described as "ongoing".

The group is currently in the "Stabilise" phase of the plan and says it is on track for £100 million of savings next year. Full-year restructuring costs are projected at £250 million, split between £190 million for Elevate28 and £60 million for legacy programmes. The pressure comes as Publicis overtook WPP as the world's largest advertising holding group, a symbolic shift that underscores the structural challenges facing traditional agency models.

Analysts will now watch whether the second-quarter improvement marks a genuine inflection point or a temporary reprieve. The next milestone is the disposal programme, which could provide both cash and strategic focus as Rose attempts to return the business to its core media and advertising strengths.