Omnicom Announces 4,000 Job Cuts, Brand Closures Following Interpublic Group Acquisition

Omnicom Announces 4,000 Job Cuts, Brand Closures Following Interpublic Group Acquisition
Omnicom announces 4,000 job cuts, brand closures following Interpublic Group acquisition

Following the $13.5 billion acquisition of Interpublic Group (IPG), the multinational marketing and communications powerhouse Omnicom Group is expected to lay off around 4,000 employees and shut down a number of agency brands, according to a Financial Times report citing business executives on December 1, 2025. The research claims that the advertising industry is undergoing an artificial intelligence (AI) overhaul, with creative production and tech behemoths like Meta making it simpler for companies to produce advertisements quickly and on a large scale.

 John Wren, the CEO of Omnicom Group, stated that the company's decision to eliminate over 4,000 positions would be a component of the IPG integration and would mostly impact senior and administrative positions. According to reports, John Wren also estimated that the cost-cutting measure will benefit the corporation financially by $750 million annually.

WPP Media to Follow Similar Model

The CEO also emphasised that the cost reductions should be viewed in the context of a similar restructuring initiative at competitors like WPP Media, which is also anticipated to experience layoffs under Cindy Rose's new leadership. According to the media report, Interpublic Group, which is now owned by Omnicom, laid off 3,200 workers in the first nine months of 2025 and cut its workforce by 3,000 to a total of 75,000 last year. As previously reported by a number of media outlets, Omnicom Group paid $13.5 billion to acquire IPG, with the business's stockholders holding a 60% part in the merged company.

IG Acquisition Marks the 2nd Largest Advertising Agency Business

With a $25 billion yearly global revenue, this transaction creates the largest advertising agency company. The merged company will rank as the second-biggest network of media and advertising agencies in India. The power dynamics between ad agency networks in India and throughout the world are probably going to shift as a result of this combination.

According to reports, Omnicom runs the Omnicom Media Group, which manages media purchasing, planning, and investment agencies, as well as the Omnicom Advertising Group, while IPG runs networks like FCB, McCann, MullenLowe, and IPG Mediabrands. According to its financial statements and exchange filings, Omnicom Media Group recorded $800 crore in sales for the fiscal year that concluded on March 31, 2024. The London-based WPP Media company, which remains the biggest with agencies like Oglivy and Burson and the GroupM network in its portfolio, will be pursued by Omnicom and IPG combined.

Quick Shots

•Layoffs will primarily impact senior and administrative roles, as part of IPG integration.

•CEO John Wren says the restructuring will save $750 million annually.

•Move comes amid an AI-driven shift in the advertising industry, reducing traditional creative production needs.

•Competitor WPP Media is expected to undergo similar restructuring under new leadership.

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