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WPP Doubles Down on Restructuring Amid Revenue Decline

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  Published in Business and Finance on Thursday, February 26th 2026 at 8:25 GMT by London Evening Standard
      Locales: UNITED KINGDOM, UNITED STATES

London, UK - February 26th, 2026 - Advertising and marketing services giant WPP today doubled down on its ongoing restructuring efforts, signaling a desperate attempt to regain momentum in a rapidly evolving and increasingly challenging market. The company, responsible for campaigns for global behemoths like Coca-Cola, Unilever, and HSBC, announced further streamlining of its operations, building upon initial changes announced in late 2023 and early 2024, alongside a report of continued revenue decline.

The original 2023 announcement of a GBP700 million cost-cutting initiative and structural overhaul, detailed at the time as a response to sluggish advertising expenditure, appears to have yielded insufficient results. While initially framed as a proactive measure, today's disclosures reveal the depth of the difficulties WPP faces. The company reported a further contraction in revenue for the first quarter of 2026, with early indicators suggesting the downturn is proving more persistent than previously anticipated.

"The advertising landscape has fundamentally shifted," explains industry analyst Sarah Chen of Stellar Insights. "The rise of in-housing, the dominance of digital platforms directly capturing ad spend - think Meta, Google, and increasingly, TikTok - and macroeconomic uncertainties have all coalesced to create a perfect storm for traditional agency holding companies like WPP."

The restructure will see WPP consolidate its creative agencies under four core client-facing businesses: VML, GroupM, Choreographed, and Linley. This move, initially unveiled in 2025, is now being aggressively implemented, with a renewed focus on reducing management layers and eliminating redundancies. However, the human cost is significant. WPP confirmed today that the original target of 1,000 job losses is likely to be exceeded, potentially reaching 1,500 as efficiencies are realized.

Mark Read, WPP's CEO, speaking at a press conference this morning, reiterated the company's commitment to adapting to the new realities of the advertising world. "We recognize we've been too internally focused - bogged down in processes instead of prioritizing our people and, crucially, our clients' needs. This isn't simply about cost-cutting; it's about building a more agile, responsive, and growth-oriented organization," he stated. Read emphasized the importance of offering integrated, end-to-end solutions, moving beyond fragmented campaigns to deliver holistic brand experiences.

However, the market remains skeptical. WPP's shares experienced a volatile trading day, initially dipping sharply before recovering slightly on assurances of long-term strategy. Jefferies analysts, while acknowledging the "long overdue" nature of the restructuring, continue to demand concrete evidence of a turnaround. "The simplification of the agency structure is logical, but execution is key," the firm noted in a research report released today. "WPP needs to demonstrate it can win back lost ground in North America, where ad spending remains stubbornly weak."

North America continues to be a significant drag on WPP's performance. The region experienced a 3.3% decline in ad spend in the final quarter of 2023, a trend that has persisted into 2026. Experts attribute this to a combination of factors, including increased competition from in-house marketing teams and a shift in advertising budgets towards performance-based marketing.

The long-term implications of WPP's restructuring extend beyond the company itself. The advertising industry as a whole is undergoing a period of profound transformation, with traditional agency models being challenged by new entrants and evolving client expectations. WPP's efforts to adapt will serve as a bellwether for the entire sector. The success, or failure, of this dramatic shift will influence how marketing and advertising are approached for years to come. Whether WPP can successfully navigate these turbulent waters and reclaim its position as a leading force in the industry remains to be seen. The next quarterly earnings report, expected in May, will be crucial in determining investor confidence and the ultimate fate of this ambitious restructuring plan.