WPP’s GroupM restructuring: Implications for its powerhouse market - India
As part of WPP’s ongoing global cost-cutting and restructuring efforts, industry experts estimate that up to 20% of GroupM’s workforce in India could be affected. In the U.S., Sharb Farjami, CEO of GroupM North America, has confirmed that the restructuring will impact approximately 40% to 45% of the region’s total workforce.
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GroupM is undergoing one of its most significant global overhauls to date, with a sweeping organizational restructuring aimed at unifying operations and eliminating redundancies across markets. In the U.S., the scale of the transformation was made clear during a recent company-wide town hall. Sharb Farjami, CEO of GroupM North America, told employees that the restructuring would “impact about 40% to 45% of our entire workforce,” according to reports. While a GroupM spokesperson reportedly later clarified that the 40%–45% figure “does not refer to people who are departing the business,” but instead relates to “how we’re bringing teams together.” It was also confirmed that the figure applies specifically to U.S.-based employees.
“This has been a pretty tough week for us,” Farjami acknowledged. “There have been colleagues that have left our business… It can feel very destabilizing.”
The structural changes in the U.S. include the formation of a new Media Management and Delivery (MMD) division to consolidate core functions under a single operating model. This marks the beginning of a broader global transition that is now rippling through other markets, including India.
In India, where GroupM operates one of its largest markets with more than 3,000 employees, Storyboard18 has learned that the restructuring could lead to a 10%–20% workforce reduction in the coming months. According to multiple industry sources, the Indian operations are preparing for significant role consolidation across shared services such as HR, finance, planning, and analytics.
Storyboard18 has reached out to GroupM and is currently awaiting a response.
Globally, GroupM, WPP’s media investment arm, had already hinted at upcoming layoffs in an internal memo dated May 6, 2025. CEO Brian Lesser outlined plans to phase out agency-specific titles, adopt a unified global structure, and consolidate leadership teams across markets to drive efficiency and consistency. The memo emphasized five strategic priorities: collaboration, data and technology, innovation, people, and organizational design.
“The cuts are focused on support roles and overlapping functions across agencies. Client-facing teams will remain largely intact,” said a senior media executive, noting that the Indian media market remains relatively strong compared to Western economies.
Lesser’s memo also stated that GroupM’s agency brands — Mindshare, Wavemaker, and EssenceMediacom — will continue to house dedicated client teams but “will no longer operate as distinct business units.” The restructuring, he added, is intended to make GroupM “a stronger, more connected company,” though it involves “difficult decisions” and will impact roles across several regions.
Currently, each GroupM agency in India has separate leadership structures, P&L accountability, and competing client rosters. As integration unfolds, internal performance reviews are reportedly being used to identify redundancies. The company is also expected to provide outplacement support for those affected. "It is expected that there could be a 10% to 20% reduction in workforce in India," an industry executive said.
Experts believe the restructuring aligns GroupM more closely with competitors like Publicis Media and Omnicom Media Group, which have already streamlined media operations under unified brand umbrellas.
A former senior media planner said some rationalization was overdue due to duplicated roles across verticals, but the suddenness of the changes is unsettling. “The intent is to become nimbler and more data-driven, but it’s unclear how this will affect client servicing in the near term.”
GroupM’s increased use of AI and automation in planning and buying is also seen as a factor accelerating this consolidation.
A media consultant observed, “The transformation is necessary, but the immediate impact is unsettling. It’s a signal of how even high-growth markets like India are not immune to global pressures.”
This shift echoes WPP’s broader strategy to simplify its agency ecosystem. As efforts to streamline operations across its global portfolio continue, WPP has reportedly shifted the creative agency Grey under the leadership of Ogilvy. The change ends Grey’s reporting alignment with AKQA Group, which had been in place since the two agencies were brought together in 2020. Company leaders emphasized that the restructuring does not amount to a merger.
In recent years, legacy networks like J. Walter Thompson and Y&R were merged into Wunderman Thompson and VMLY&R — now consolidated further into VML. Likewise, Essence and MediaCom were merged in 2022 to form EssenceMediacom.
Despite the uncertainty, GroupM’s position in India remains strong. However, the impact of structural shifts will depend on how well the company manages talent retention, client communication, and service continuity.
"But for emerging brands or those in transition phases, this may feel like one change too many. The promise of a unified structure sounds great on paper, but if local teams lose autonomy, agility, or cultural relevance, clients will feel it," said an industry observer.
"The biggest risk is perceived service dilution, especially for mid-sized accounts. GroupM must double down on client transparency during this structural reset," advised another.
While immediate client confidence may hold, sources say the cumulative effect of the restructuring, recent CCI scrutiny, and industry consolidation could open doors for agile, strategy-first agencies. “It may not spark a mass exodus, but it opens doors for agile, strategy-first agencies to step in," said one media executive.
Structural changes in India may include shared services and new reporting lines within the next two quarters. However, experts caution that cultural and operational integration will take much longer in a market where relationships are deeply personal.
"If the ‘single global model’ starts to feel too distant from India’s complexity, clients may look for partners who feel closer, faster, and more human. GroupM will likely retain leadership, but the edges of that leadership are vulnerable, and that’s where disruption begins," said another executive.
GroupM still has the advantage of scale, talent, and legacy client relationships. But going forward, its competitive edge will hinge less on volume and more on remaining emotionally and operationally accessible to clients and employees alike. For Indian clients, the new centralized model could offer broader access to integrated global solutions. But any ambiguity in execution, experts say, especially around team changes, might raise concerns about continuity and nuanced market understanding.
