Business

WPP’s bold restructuring signals a push to regain market ground amid revenue decline

Saturday, 1 November 2025 5:04AM UTC

WPP embarks on a comprehensive overhaul under CEO Cindy Rose to address decline, leverage AI, and expand market share amid tough industry conditions and plummeting market capitalisation.

WPP, the British advertising giant, is poised for a deep and bold restructuring under the leadership of its new CEO, Cindy Rose. The company announced a strategic review coinciding with its weak third-quarter results, characterised by a 5.9% year-on-year decline in net revenue. This marks a significant downturn for WPP, which recently lost its position as the world's largest advertising group to Publicis Groupe amid steep market challenges. According to Bank of America, Rose's review signals transformative changes designed to simplify operations, leverage AI and data technologies, and improve financial performance through operational efficiency and disciplined capital allocation.

The review, due to be detailed early next year, aims to simplify WPP's client offerings, heighten operational execution, and build a high-performance culture. The company also plans to expand its addressable market by enhancing enterprise and technology solutions. Speaking during the Q3 briefing, Rose emphasised a sense of urgency and impatience to correct the company’s underperformance, stating her immediate focus is on driving improvement while preparing a comprehensive plan for future growth.

WPP has had to downgrade its full-year revenue forecast twice in 2025. Originally expecting a marginal revenue decline, the forecast was first revised to a 3–5% fall in July and now stands at a 5.5–6% decline as of October. This contrasts sharply with competitors: Publicis Groupe reported 5.7% growth and Havas 3.8% in the same quarter, while Omnicom Group also saw growth of 2.6%. The challenges at WPP are compounded by client budget cuts and a shift in media spending directly to media owners, bypassing traditional agency billings, according to Madison & Wall analysts.

WPP’s media network, WPP Media, has been particularly affected, with significant client losses and ongoing structural changes, including internal leadership realignments that have removed profit and loss responsibilities from individual agency heads. Market insiders, including Barclays, suggest that part of the strategic review could involve asset disposals, with a sharper focus on high-value business segments.

The company’s PR division, which includes operations such as Burson and Ogilvy PR, also faced difficulties, posting revenue declines of 5.9% in the third quarter. WPP’s decision to sell a majority stake in FGS Global last year to private equity firm KKR is indicative of a broader portfolio reshaping strategy.

Looking ahead, JPMorgan analysts expect the current weaker revenue trend to extend into 2026, driven by declines in media growth, ongoing weakness in consumer packaged goods (CPG), reduced spending in technology and automotive sectors, and slowing growth in key markets including the UK, US, and Germany. Losses of major media clients such as Mars and Paramount are forecasted to further weigh on WPP’s growth early next year.

Despite these setbacks, there are bright spots. WPP’s Indian market buoyed the company with 6.7% revenue growth in the third quarter—the only among its top five markets to record positive figures—driven by strong new business momentum and growth in production services such as Hogarth. Leadership changes, including the appointment of Devika Bulchandani as Chief Operating Officer, underscore WPP’s commitment to improving execution and operational focus.

WPP has also maintained strategic investments in technology and innovation. The company announced a five-year extension of its partnership with Google to advance cloud and AI capabilities, aiming to integrate these technologies more deeply into client offerings through platforms like WPP Open and Open Intelligence. These efforts have already helped secure major client wins, exemplified by the acquisition of Mastercard’s $180 million media account.

Financially, WPP has been under pressure for several years. Its market capitalisation has plummeted from £24 billion in 2017 to under £4 billion by mid-2025, reflecting investor concerns. However, research shows a notable uptick in hedge fund interest last year, suggesting investor optimism around the potential upside of Rose’s restructuring plans.

Overall, Cindy Rose’s initial months at WPP have been challenging but marked by decisive action. The forthcoming strategic review will reveal the full extent of the company’s planned transformation as it seeks to regain momentum in a rapidly evolving advertising landscape increasingly dominated by AI, digital innovation, and shifting client dynamics.

📌 Reference Map:

Paragraph 1 – ^[1] PrWeek, ^[2] Reuters
Paragraph 2 – ^[1] PrWeek
Paragraph 3 – ^[1] PrWeek, ^[2] Reuters
Paragraph 4 – ^[1] PrWeek
Paragraph 5 – ^[1] PrWeek
Paragraph 6 – ^[1] PrWeek, ^[7] Economic Times
Paragraph 7 – ^[1] PrWeek, ^[6] Reuters
Paragraph 8 – ^[4] WPP, ^[6] Reuters
Paragraph 9 – ^[1] PrWeek, ^[7] Economic Times
Paragraph 10 – ^[6] Reuters
Paragraph 11 – ^[1] PrWeek, ^[2] Reuters

Source: Noah Wire Services

More on this

https://www.prweek.com/article/1938085/cindy-roses-wpp-review-points-deep-bold-restructuring-analysts - Please view link - unable to able to access data
https://www.reuters.com/business/retail-consumer/wpps-new-ceo-starts-with-profit-warning-uk-ad-group-2025-10-30/ - WPP issued a profit warning as new CEO Cindy Rose steps into leadership amid significant challenges. The British advertising group reported a worse-than-expected 5.9% decline in third-quarter net revenue, citing a sharp downturn in its core ad planning and buying unit, WPP Media. Rose, a former Microsoft executive who succeeded Mark Read, acknowledged the company’s underperformance and pledged decisive action, including dramatically simplifying operations and increasing focus on data, AI, and enterprise tech solutions to drive client growth. The firm downgraded its 2025 revenue forecast, now expecting a 5.5–6.0% drop in revenue less pass-through costs and a slightly reduced operating margin of around 13%. WPP, which lost its top industry position to Publicis, has suffered steep losses, with shares halving in value in 2025 and its market capitalization dropping from £24 billion in 2017 to £3.9 billion as of Wednesday.
https://www.reuters.com/business/media-telecom/wpps-organic-revenue-drops-1-after-weak-final-quarter-2025-02-27/ - WPP, a British advertising group, reported a worse-than-expected 1.0% decline in full-year organic revenue after a disappointing final quarter, when it said it was hit by weaker client discretionary spend in its home market, North America and China. Headline operating profit rose 2.0% ... . The results confirmed the company, which ... . Analysts had expected WPP to report ... %. For its guidance for 2025 ... . "Though we remain cautious given the ... ," Chief Executive Mark Read said. ($1 = 0.789 ... )
https://www.wpp.com/en/news/2025/10/third-quarter-trading-update-2025 - WPP reported a 5.9% like-for-like (LFL) decline in revenue less pass-through costs for the third quarter of 2025, as the company grapples with client losses, weak ad spending, and continued macro uncertainty in key markets. Total Q3 revenue stood at £3.26 billion, down 8.4% year-on-year on a reported basis, while revenue less pass-through costs came in at £2.46 billion, down 11.1% reported and 5.9% LFL. Year to date, revenue less pass-through costs fell 4.8% LFL to £7.49 billion. With performance "at the low end of expectations," WPP cut its full-year outlook, now projecting FY organic growth between -5.5% and -6.0%, compared to its previous forecast of -3% to -5%. The company maintained its headline operating margin guidance at around 13%. CEO Cindy Rose acknowledged the company's underperformance and pledged decisive action, including dramatically simplifying operations and increasing focus on data, AI, and enterprise tech solutions to drive client growth. The firm also announced a five-year extension of its partnership with Google to advance cloud and AI technology.
https://www.reuters.com/business/media-telecom/wpp-media-cuts-2025-global-advertising-revenue-growth-forecast-6-trade-concerns-2025-06-09/ - WPP Media has revised its 2025 global advertising revenue growth forecast down from 7.7% to 6% due to uncertainties surrounding U.S. trade policies. This cautious outlook reflects advertisers’ hesitancy to commit to new marketing plans amid policy fluctuations. The report highlights the continued dominance of digital advertising, which is projected to constitute 73.2% of the total $1.08 trillion global ad revenue expected in 2025. Notably, user-generated content is anticipated to surpass professionally produced content in ad revenue share, while print advertising is forecasted to decline by 3.1% to $45.5 billion. Search ad revenue is expected to grow by 7.3%. The report also emphasizes the increasing integration of AI tools in ad production and targeting, with companies like Meta planning to fully utilize AI for ad creation by 2026. Amid ongoing economic uncertainty, brands are leaning toward more flexible advertising contracts and secure data strategies. The U.S. remains the world’s largest ad market, projected to grow by 5.6% to $404.7 billion, followed by China and the UK.
https://www.reuters.com/sustainability/boards-policy-regulation/hedge-funds-invest-wpp-cindy-rose-era-starts-research-shows-2025-09-01/ - Cindy Rose officially began her role as CEO of WPP, the British advertising giant, aiming to revitalize the company amid declining financial performance. Her appointment follows WPP’s decision to halve its dividend, intended to allow strategic flexibility. WPP's market value has fallen dramatically from £24 billion in 2017 to £4.2 billion in 2025, though its stock saw a slight uptick to 394 pence upon Rose’s start. Research by Panmure Liberum indicates hedge funds increased their holdings in WPP by 44% in Q2, ranking it their top European purchase after Aegon. This investment surge suggests confidence in possible returns via restructuring or asset sales. Despite the challenges, Rose remains optimistic about leveraging WPP's talent, creativity, and technology. WPP lost its status as the world’s largest advertising group to France’s Publicis, which has outpaced WPP in net new billings and technology investments. However, WPP is making strides with its AI platform, WPP Open, and Open Intelligence technology. A recent win of Mastercard’s $180 million media account highlighted the value of WPP’s advanced AI and data-driven capabilities.
https://economictimes.indiatimes.com/industry/services/advertising/wpps-q3-earnings-show-global-slowdown-but-india-stands-out-with-strong-growth/articleshow/124943724.cms - The company is implementing leadership changes and strategic initiatives to improve execution and drive future growth. Image: q3-results-today-zomato-paytm-among-37-companies-to-announce-earnings-on-monday.AgenciesRepresentative Image WPP, the world’s leading advertising and marketing services group, reported a weak third quarter for 2025 and revised its full year guidance downward. But in a quarter dominated by declining revenues across key regions, India emerged as the only major growth market. Q3 revenue of £3.3 billion was down 8.4% year on year on a reported basis and down 3.5% like for like. Revenue less pass through costs of £2.5 billion was down 5.9% like for like. Performance in the quarter was driven by a step down in WPP Media compared to the second quarter. Year to date reported revenue was down 8% year on year and down 2.8% like for like. Year to date revenue less pass through costs was down 10.5% year on year and 4.8% like for like. Based on trading year to date, the company expects 2025 like-for-like growth in revenue less pass through costs of negative 5.5% to negative 6.0% and headline operating profit margin of around 13%. Among the company’s top five markets, India was the only one to deliver growth. In the third quarter, India posted a 6.7% increase in revenue less pass through costs, while the United States declined 5.6%, the United Kingdom fell 8.9%, Germany dropped 10.6% and China contracted 10.6%. On a year to date basis, India remains in positive growth territory at 2.1% like for like. WPP said the Indian market benefited from continued strong new business momentum, particularly in its media planning and buying operations. Hogarth, the group’s production unit, also returned to growth during the quarter with support from India. Leadership changes underscore the company’s efforts to improve execution. Devika Bulchandani, who previously led Ogilvy globally and has strong India ties, was appointed Chief Operating Officer of WPP. Cindy Rose, Chief Executive Officer of WPP, said: "My ambition is for WPP to lead our industry in terms of innovation, client delivery and organic growth. However, I acknowledge that our recent performance is unacceptable and we are taking action to address this.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative presents recent developments regarding WPP's strategic review under CEO Cindy Rose, with the earliest known publication date being October 30, 2025. The report includes updated data on WPP's third-quarter results and strategic plans, indicating a high freshness score. However, the narrative references multiple sources, including PrWeek and Reuters, suggesting potential recycling of content. Additionally, the report includes a reference map with links to various sources, which may indicate a reliance on existing content. The presence of a press release from WPP announcing the strategic review further suggests that the narrative is based on official communications, which typically warrants a high freshness score. Nonetheless, the inclusion of multiple sources and the reference map may indicate a lack of originality. The report also mentions that WPP has been under pressure for several years, with its market capitalisation dropping from £24 billion in 2017 to under £4 billion by mid-2025, reflecting investor concerns. This information aligns with previous reports, indicating that some content may be recycled. Overall, while the narrative includes updated data, the reliance on multiple sources and the reference map suggests potential recycling of content.

Quotes check

Score: 7

Notes: The narrative includes direct quotes from WPP CEO Cindy Rose, such as her statement on the company's underperformance and her focus on driving improvement. These quotes are consistent with previous reports, indicating that they may have been reused. The wording of the quotes appears identical to earlier material, suggesting potential recycling of content. However, no online matches were found for some of the quotes, raising the possibility of original or exclusive content. Overall, the presence of identical quotes in earlier material suggests potential reuse, but the lack of online matches for some quotes indicates potential originality.

Source reliability

Score: 9

Notes: The narrative originates from reputable organisations, including PrWeek and Reuters, which are known for their journalistic standards. The inclusion of a press release from WPP further supports the reliability of the information. However, the presence of a reference map with links to various sources may indicate a reliance on existing content, which could affect the originality of the narrative. Overall, the sources are reliable, but the reliance on multiple sources and the reference map may affect the originality of the content.

Plausability check

Score: 8

Notes: The narrative presents plausible claims regarding WPP's strategic review under CEO Cindy Rose, including the company's underperformance and plans for restructuring. The information aligns with previous reports, indicating consistency and plausibility. However, the reliance on multiple sources and the reference map may indicate a lack of originality, which could affect the overall credibility of the narrative. Additionally, the presence of a press release from WPP announcing the strategic review suggests that the narrative is based on official communications, which typically warrants a high plausibility score. Overall, the claims are plausible, but the reliance on multiple sources and the reference map may affect the originality and credibility of the content.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents recent developments regarding WPP's strategic review under CEO Cindy Rose, with updated data on the company's third-quarter results and strategic plans. However, the reliance on multiple sources, the inclusion of a reference map with links to various sources, and the presence of identical quotes in earlier material suggest potential recycling of content. While the sources are reputable, the lack of originality and potential reuse of content raise concerns about the freshness and originality of the narrative. Therefore, the overall assessment is 'OPEN' with a medium confidence level.

WPP
advertising
business restructuring