Layoffs in Adland: Omnicom's acquisition of IPG nears finish line. But at what human cost?

Omnicom Group Inc. is reportedly preparing for a fresh round of restructuring as its historic merger with Interpublic Group (IPG) enters the final lap, raising concerns over job cuts, client continuity and the future shape of the world’s second-largest advertising company.

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With 13 of 18 regulatory approvals already secured, including the UK greenlight earlier last month, CEO John Wren recently told investors the deal remains “fully on track” for completion in H2 2025. The biggest hurdle still looms in Brussels, with the European Union yet to issue its verdict. “We’re pretty damn confident that we’re well along in the process,” Wren said, brushing aside fears of delays.

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But behind the optimism, the cost math is unforgiving.

Omnicom has earmarked $750 million in annual synergies, largely from overlapping agencies, shared services and back-office consolidation. The company booked $89 million in Q2 restructuring charges - an early sign that integration workstreams are already in motion. IPG, for its part, has cut 2,400 jobs, or 4.5% of its workforce, since January to streamline ahead of the handover.

Omnicom CFO Philip J Angelastro during the Q2 earnings call, added, "As we get closer to closing the acquisition of IPG, we'll be evaluating ways to accelerate savings opportunities prior to the closing date. We continue to expect to achieve our cost savings target of $750 million."

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Wren noted that the groundwork for integration is already well underway: “Where we have to reorganize ourselves to make it easier to ingest our new colleagues, that's what we're doing.”

“Redundancies will start with functions”

A senior executive at a top media agency based in Delhi told Storyboard18: “We’re seeing a surge in job applications from Omnicom’s creative and media agencies. Many employees are already serving their notice periods and actively applying elsewhere."

The executive added, "This was inevitable - mergers often create role redundancies that leave many employees without jobs. These layoffs could set off a domino effect across the industry and ultimately disrupt clients.”

Ashish Bhasin, Founder of The Bhasin Consulting Group, said layoffs are a near certainty.

“Whenever a merger of this scale happens, there are obviously going to be redundancies. Typically, you start with corporate functions - finance, HR, legal- where duplication is the lowest-hanging fruit. Over time, it can extend to account management, creative, and production if overlaps persist,” he said.

Bhasin added that globally, “around 8–10% of manpower may be impacted,” noting that headcount at Omnicom India alone is roughly 1,200.

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“Growth is the only antidote. If you’re winning clients, you need more people. But given AI and efficiency pressures, layoffs won’t be avoided completely,” noted the industry veteran.

Industry watchers and insiders expect sharper restructuring at the senior leadership level. They say deeper cuts were always on the horizon, and the current round is only the beginning. The top tier is likely to be hit hardest, with multiple practices led by high-profile leaders facing consolidation or downsizing. These waves of restructuring could fundamentally reshape the company’s structure.

They believe near-term client losses are unlikely. Omnicom remains a market leader and continues to win against rivals, so continuity of business will not be a pressing concern. In the short run, the efficiency drive is expected to be more technology - and platform-led rather than dependent on people.

Industry experts added that the only factor that could cushion or prevent such layoffs is strong business growth. Since advertising is inherently a people-driven business, new client wins would require more staff, helping absorb some of the impact. However, with the growing role of AI and other headwinds, the current environment is not conducive to such growth.

A key pillar of Omnicom’s future lies in its AI-first strategy. The company has consolidated its data and tech assets- Omni, OmniAI, Artbot, and Flywheel Commerce Cloud- into a unified platform led by Duncan Painter.

CTO Paulo Juveienko said Omnicom is deploying “agentic frameworks” that weave AI agents into every stage of campaign lifecycles, from predictive modeling to creative optimization.

Wren framed AI as an engine for growth, not cost-cutting: “It’s not about creating the same content cheaper. It’s about creating more content to drive true mass personalization at scale. With every technological revolution, consumer expectations move faster than brands can keep up- and AI helps close that gap.”

While Wren continues to downplay client-loss risks, industry observers caution that conflicts could spark account reviews once integration deepens. “If IPG has Coke and Omnicom has Pepsi, that’s a real issue,” Bhasin noted.

For now, the advertising giant enters the merger’s endgame from a position of operational control- strong media growth, early AI leadership, and confidence in its $750 million synergy plan.

But as the dust settles, the bigger question looms: how many jobs will remain once the new Omnicom-IPG colossus takes shape?

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