Credit: Jessica Tan via Unsplash
GroupM has reportedly started reorganising and cutting jobs in the US, part of a restructure which parent WPP has been calling a “simplification”.
Staff were told “about 40% to 45% of our entire workforce” would be affected in North America, according to a report by Adweek. This did not refer to role cuts but rather to reorganisation.
“This has been a pretty tough week for us,” said Sharb Farjami, CEO of GroupM North America, according to a recording of a company town hall.
“There have been colleagues that have left our business… It can feel very destabilising.”
One report suggested GroupM would also have a name change to WPP Media.
Some of the reaction to the news has been severe.
"Just days after WPP quietly euthanised the GroupM brand in favour of the soulless name 'WPP Media,' the axe came down — hard," said freelance support engineer Newbraski A.
"Multiple employees across WPP’s media buying units were abruptly laid off, blindsided by a move that reeks of corporate cowardice and leadership rot."
WPP employees are also unhappy with WPP's mandate of a four day a week return to the office.
GroupM, making up 40% of WPP’s revenue, facing a more challenging media environment and with client losses behind it, is a priority for the UK-based global advertising group.
Overall, according to a presentation by WPP to market analysts on March quarter results, GroupM fell -0.9% on a like-for-like revenue less pass-through costs basis in the three months to March compared to +2.4% in the same quarter last.
WPP, reporting overall negative growth and forecasts more of the same this year, earlier this month said it was accelerating changes in a bid to ”catch up” to and then “leapfrog” competitors.
Locally, GroupM in Australia has been bucking the global trend, with EssenceMediacom winning Specsavers and retaining the Queensland government account.
COMvergence numbers show GroupM in Australia delivered US$210 million in new and retained billings during 2024, $US60 million ahead of its nearest competitor.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.