‘We did not sign up for chaos’: Omnicom–IPG merger sparks client jitters

As the Omnicom–IPG merger reshapes global advertising, India’s agencies are caught in an escalating cycle of client anxiety and employee unrest. Insiders say at least eight major client accounts in India — across media and creative — are likely headed for review next year amid confusion around the merged structure and fears of service disruption. On the inside, staff report that basic workflow decisions have slowed, internal communication has dried up and concerns over job losses have become “a daily conversation.”

In a major structural development within the Omnicom–IPG media framework, Kartik Sharma has been appointed CEO of Omnicom Media India, Shashi Sinha has been appointed as the Strategic Advisor and Amardeep Singh as the Chief Operating Officer of the newly formed, jointly driven media strategy and buying unit for India.

Client Jitters Grow as Account Reviews Loom

According to senior industry sources, at least three Omnicom media clients are preparing to call for media account reviews in 2026, while five major creative clients are likely to initiate creative reviews.

The uncertainty has been triggered primarily by the sweeping structural changes across the combined entity. While the creative restructuring will take effect on January 1, 2026, the media reorganization has already been implemented in India, creating immediate shifts in leadership, reporting structures and client servicing teams.

One large advertiser expressed frustration over the lack of clarity: “We were told the merger would create efficiencies, but all we’re seeing right now is confusion. Nobody seems to know who is running what,” said a senior marketing executive at a long-standing Omnicom client, requesting anonymity.

Another major brand manager echoed a similar sentiment: “We cannot afford instability in a high-stakes year. If the agency can’t assure continuity, we will explore alternatives.”

Another advertiser said, "We did not sign up for uncertainity and ambiguity. We were assured of smooth transition but we cannot see this clearly happening. We will evaluate further and take a decision to streamline our media strategy."

Regulatory Scrutiny Compounds Operational Stress

The Omnicom Media India is also facing regulatory scrutiny from the government, creating further operational hurdles. An Omnicom India employee described the internal atmosphere as “paralysed by uncertainty”: “We’ve survived restructurings before, but this one feels unprecedented. There’s a sense that decisions are being taken far away, and we’re waiting for the impact to hit.”

Another employee in a creative agency said the merger has already frozen hiring decisions and delayed pitches: “Teams are stretched, and morale is very low. People are worried about being redundant.”

4,000 Job Cuts and the End of Historic Agency Brands

Symbolically, the most shocking development was Omnicom’s announcement that it would retire some of the most storied names in advertising history — DDB, FCB and MullenLowe. These brands carry decades of legacy, especially in India, where IPG agencies date back nearly 80 years.

Globally, CEO John Wren confirmed over 4,000 job cuts, mostly across overlapping administrative and leadership roles. This follows:

2,400 IPG layoffs in H1 2025

4,000 IPG layoffs in 2024

3,000 Omnicom layoffs in 2024

One former IPG employee who was part of the 2024 layoffs described the merger as “the final blow to traditional advertising identity”:

“These names built the industry. To see them disappear overnight is surreal.”

India, one of the most strategically important markets for both groups, now faces what experts describe as a “seismic realignment.” A senior independent media consultant said, “This merger will permanently alter the balance of power in India’s agency ecosystem. Several rival networks are already approaching vulnerable clients.”

Local agencies, too, sense an opportunity. An executive at a rival holding company commented, “We are seeing a surge in inbound queries from brands that want stability clear decision-making.”

Omnicom has positioned the merger as a long-term growth lever, promising annual cost synergies above $750 million and unified investments in technology, data and AI platforms. With creative margins shrinking and AI-driven production accelerating commoditization, the company argues that consolidation is essential for survival.

Yet investors appear unconvinced. Omnicom shares are down 17% this year, reflecting concerns about whether traditional holding companies can preserve profitability in a rapidly shifting media economy.

An advertising industry analyst noted: “This merger buys scale, not reinvention. Without a fundamental rethink of the business model, scale alone won’t guarantee resilience.”

The Omnicom–IPG merger represents the most dramatic agency consolidation in decades, reshaping the hierarchy that defined global advertising for nearly 50 years. But beneath the powerhouse narrative lies a workforce bracing for layoffs, clients preparing for transitions, and an industry grappling with what it means when heritage brands are retired in a single sweep.

For India, the waves of disruption are only beginning. As restructuring unfolds through 2026 and client confidence wavers, the market may witness one of its most intense periods of account movement, leadership churn and agency realignment.

In the words of an industry veteran, “This isn’t just a merger. It’s the end of an era — and the beginning of something we don’t fully understand yet.”