Brand Marketing
FMCG firms cut senior roles by 32%; Total headcount shrinks 9.26% in FY25
WPP slashes global workforce as revenue contracts
WPP cut its global workforce by 7,000 in the past year as revenue and margins fell, part of a cost-saving drive tied to a broader strategic shift into AI and data platforms.
WPP, the multinational advertising conglomerate, reported a notable shrinkage of its global workforce on Thursday as it navigates mounting economic pressures. The group revealed that the average number of employees during the first half of 2025 dropped to 106,000 (down from 113,000 a year earlier), while total headcount as of June 30 stood at 104,000, compared to 111,000 at the same time last year. The 3.7 percent decline in staff since the beginning of the year was largely aligned with a like-for-like revenue contraction, according to the company.
That workforce reduction coincides with a softening in financial performance. WPP’s first-half revenue was £6,663 million, down 7.8 percent on a reported basis and 2.4 percent on a like-for-like basis, while headline operating profit plunged to £412 million (headline operating margin fell to 8.2 percent from 11.5 percent a year earlier). The reported operating profit, which factors in impairment and restructuring expenses, stood at £221 million.
Rising severance and restructuring costs played a key role in the margin squeeze. WPP spent £86 million on severance in H1 2025 - far exceeding the £36 million outlay in H1 2024. The company stated that second-quarter actions are expected to deliver £150 million-plus in annualised gross cost savings starting in 2026.
As part of its strategy to boost productivity, WPP highlighted the accelerated adoption of its internal platform, WPP Open: about 85 percent of client-facing employees were using it in June, compared to roughly 60 percent in March. This, along with investments in AI and first-party data platforms like InfoSum, is intended to drive efficiency amid a leaner workforce.
The report also revealed regional disparities: North America and India held steadier, while China saw sharp revenue declines tied to lost client assignments. Media agencies and global integrated operations faced double-digit revenue pressure, while specialist businesses remained mostly flat.
WPP’s headcount cuts highlights a pivotal moment. The company is shedding staff to sharpen its cost structure while betting on technology-driven efficiency to stabilize margins in the months ahead. Under new leadership, the firm’s leaner footprint may yet serve as a springboard to future growth.
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