WPP Revenues Drop 5.8% as It Announces Strategic Review

WPP’s shares plunged by nearly 5% on Thursday morning, hitting a 16-year low, after it announced more disappointing financial results and a strategic review under incoming chief executive (CEO) Cindy Rose.

The numbers

4.3% – decline in revenue less pass-through costs for the first half of 2025, with total revenues reaching $6.7 billion (£5.03 billion).

5.8% – decline in revenue less pass-through costs for Q2 2025, reaching $3.3 billion (£2.5 billion).

47.8% – decline in operating profit for the first half of 2025 to $295.5 million (£221 million). 

7,000 – reduction in headcount over the past year.

Watercooler talk

The beleaguered holding company, which owns agencies including Ogilvy and VML, halved its dividend and said Rose, who will succeed outgoing CEO Mark Read on Sept. 1, will review the company’s strategy.  

WPP revealed that it had cut costs over the period. That included reducing its global workforce to 104,000 from 111,000 a year ago; slashing staff incentives by 60% to $78.8 million (£59 million); and decreasing its freelancer budget by 13% in the last year.

This was Read’s last earnings report after WPP appointed Rose, a former Microsoft executive, to the top job last month. The group has been hit by client losses from brands such as Mars, layoffs, restructuring, and a rocky rollout of its return-to-office mandate. 

However, Read said the company had made “significant progress” on repositioning WPP Media (the new brand for its media agencies that it revealed earlier this year), simplifying its organization, and reducing costs. It also acquired data collaboration platform InfoSum to enhance its AI and data capabilities, and has been investing in AI through platforms like WPP Open. 

Key quote 

Read bid farewell after seven years at the helm of WPP. 

“WPP is a company with enormous strengths in creativity and media, technology and AI, talented people, deep client relationships, and unmatched global reach,” he said. “Throughout my seven years as CEO, technological innovation has been a constant, and I believe that thanks to our investment in AI, we can look to the future with confidence.” 

“I would like to thank our clients for their partnership and our people for their dedication, and I wish them, and Cindy, every success in the future.”