As Omnicom-IPG mega merger moves ahead, workforce restructuring begins
In the recent past, the Omnicom-IPG merger has also spurred a wave of executive exits and internal reshuffles across both holding companies.
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As Omnicom’s $30 billion acquisition of Interpublic Group (IPG) progresses towards finalization — especially after securing the Competition Commission of India’s (CCI) approval — workforce restructuring has begun across global markets. IPG Group reportedly has initiated centralizing corporate functions like finance and accelerating investment in central platform capabilities like production and analytics through greater consolidation, on the back of the transformation and restructuring that Interpublic announced in February.
Although Shashi Sinha, Executive Chairman at IPG Mediabrands India, confirmed to Storyboard18 that no restructuring is underway in India: “No restructuring in IPG Mediabrands at all,” he stated.
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Just last month, IPG Mediabrands India (which houses Initiative Media, Lodestar UM, and Interactive Avenues) implemented a significant leadership realignment. Sinha moved into the role of Executive Chairman, while Amardeep Singh, former CEO of Interactive Avenues, was appointed CEO of the India business. The dual leadership structure is expected to remain in place for the next three years to ensure continuity through the merger.
Leadership Restructuring Gains Pace
Globally, IPG has begun centralizing functions like finance and ramping up investments in platforms focused on production and analytics. These moves follow the transformation roadmap unveiled in February 2025. The Omnicom-IPG merger has also spurred a wave of executive exits and internal reshuffles across both holding companies.
IPG in India: Shantanu Sirohi was elevated from COO to CEO of Interactive Avenues. Paras Mehta transitioned from IPG's programmatic unit in Mumbai to the Global Capabilities Centre in Pune. High-profile exits include Amir Ismail (CEO, Lintas Live), Valerie Pinto (CEO, Weber Shandwick India), and Jintendar Dabas (COO, McCann Worldgroup India), who moved to Cheil X.
Omnicom: Suraja Kishore stepped down as CEO of BBDO India. Ranjeev Vij exited TBWA India. Globally, Matt McNally, CEO of Omnicom Health Group, resigned, and the company cut roughly 3,000 roles last year.
During an earnings call, Omnicom CEO John Wren highlighted a 40% reduction in corporate expenses through back-end consolidations and a new Unified Practice Area structure.
Structure of the Combined Entity
The merged company will retain the Omnicom name and be led by current Omnicom CEO John Wren. Philippe Krakowsky, IPG’s CEO since 2021, will take on the role of Co-President and COO, alongside Daryl Simm. Krakowsky will also co-chair the Integration Committee post-merger. Omnicom shareholders will hold 60.6% of the new entity, while IPG shareholders will control 39.4% on a fully diluted basis. The deal is expected to close in the second half of 2025.
IPG's agency brands will operate under the Omnicom Advertising Services (OAS) umbrella, each led by a single OAS leader in major markets reporting to regional heads, other IPG services will be absorbed into Omnicom's existing practice areas.
Combined, Omnicom and IPG employ over 133,000 people worldwide (Omnicom: 75,900; IPG: 57,400). The companies have pledged that the merged entity will become “the premier marketing and sales company,” supported by a network of over 100,000 practitioners across media, digital, healthcare, PR, and commerce.
However, this also raises pressing questions about the fate of approximately 33,300 employees whose roles may overlap post-integration.
“Expect a lot of job losses and reconfiguration of client alignments,” said one senior media executive.
"Weaker global brands like MullenLowe, DDB, and FCB may face headwinds. In India, all three are stronger than TBWA and BBDO, but local realities may get papered over," he said.
"Expect a lot of job losses and a reconfiguring of client alignments for sure," said an industry observer.
Another senior media executive shared that while back-end synergies across finance, HR, and tech tools could cut costs — potentially up to 20–25% of operational expenses — client-facing functions will face more nuanced challenges.
The Extensive Portfolio
Omnicom's portfolio includes three global advertising agency networks – BBDO, DDB and TBWA – as well as a global media network, Omnicom Media Group, which is composed of three providers of media services: OMD, PHD and Hearts & Science. Omnicom also manages a global diversified group of agencies under the DAS Group of Companies, which is comprised of: the Health Group, the Precision Marketing Group, the Commerce Group and the Advertising Collective. In 2021, it created the Communications Consultancy Network (CCN) comprised of Omnicom Public Relations Group – with agencies including FleishmanHillard, Ketchum, Marina Maher Communications, Porter Novelli and more.
IPG global brands include Acxiom, Craft, FCB, FutureBrand, Golin, Initiative, IPG Health, IPG Mediabrands, Jack Morton, KINESSO, MAGNA, McCann, Mediahub, Momentum, MRM, MullenLowe Global, Octagon, UM, Weber Shandwick and more. IPG is an S&P 500 company with total revenue of $10.89 billion in 2023.
IPG has recently made significant strategic shifts. The company sold its digital agency Huge to private equity firm AEA Investors and, in nearly the same breath, acquired Intelligence Node, an eCommerce intelligence platform designed to bolster IPG’s commerce capabilities. The company’s broader strategy also includes ramping up investing in "principal buying," a practice gaining traction in which agencies negotiate bulk media deals with sellers and then resell the media to clients at a markup. Michael Krakowsky, IPG’s CEO, has indicated that the company plans to expand its focus on principal-based media buying in response to the rapidly evolving media landscape.
In June last year, IPG denied a buyer who made an offer to buy global agency network MullenLowe. In March this year, the company sold R/GA, its creative innovation company, to Truelink Capital, a private equity firm. The sale marked a return to independence for R/GA after 23 years as part of IPG.
The Creative Networks
IPG’s creative firepower in India is anchored by three major networks: McCann Worldgroup India, led by Prasoon Joshi and regarded as one of the group’s top-performing global markets; FCB Group India, which recently underwent a leadership transition with Dheeraj Sinha taking over from Rohit Ohri as Group CEO; and MullenLowe Lintas, which recently saw the exit of Amir Ismail, CEO of Lintas Live.
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Omnicom, meanwhile, fields a strong lineup with DDB Mudra Group; BBDO India, guided by the creative leadership of Josy Paul and impacted by the recent departure of CEO Suraja Kishore; and TBWA India under the Omnicom Advertising Group (OAG) which is led by Aditya Kanthy as CEO and MD. The largest entity within Omnicom Group - Omnicom Media Group (OMG) India is led by Kartik Sharma.
These six agencies represent some of India’s most established creative powerhouses, with deep-rooted brand equity and robust client portfolios. Notably, both holding companies cater to competing clients in the market, setting the stage for inevitable conflict-resolution strategies as the merger progresses.
