Revamped Report: WPP's Shocking New Phase
Job Cuts at WPP Media Branches Follow Close After Speculation of GroupM Re-branding
Barely a week after WPP seemingly changed GroupM's moniker to WPP Media, a fresh wave of layoffs has hit the company, leaving employees in shock and uncertainty. Confirming the extent of these layoffs is still elusive, but the uncommon quietness within WPP's media buying unit is deafening.
ADWEEK couldn't verify the full picture, while a spokesperson from GroupM remained silent on the matter. Employees, howevener, have been vocal about the suddenness of the moves.
Initially, layoffs were anticipated to mark leadership consolidation and structural reconfigurations. But the recent developments have left employees feeling blindsided, with no heads-up before the axe fell just days later.
GroupM's CEO, Brian Lesser, did hint in an internal memo about impending layoffs, as per a report by Ad Age. This culling appears to have spanned various WPP media agencies, sources suggest.
"My bosses texted me right afterward," recounted one affected colleague. "We had no idea. No one informed us about this."
This individual participated in a meeting on May 7 at 3 World Trade Center, titled "Connect." Upon entering the room, they were met with an unexpected surprise. "I walk inside, and they just say it's business as usual, that my position no longer aligns with the strategic needs or business interests of the company."
The individual attempted to bid farewell to their team, but was told to leave immediately.
Another colleague who lost their job described a tense and anxious atmosphere at work. "People are getting disappeared, and you're just supposed to pretend it didn't happen," they said.
In the wake of said layoffs, the staff members were immediately locked out of their email accounts and encountered their abrupt exits only through bounce-back emails.
A third source who managed to keep their job indicated that their agency also faced cuts, affecting associates, managing partners, directors, and both their agency's HR lead and chief strategy officer.
The laid-off employees believe that the corporate shakeup might have ties to recent setbacks, such as the loss of a significant client like Coca-Cola, and rising discontentment with leadership.
However, a fourth source aware of WPP Media cast doubt on client losses being the main culprit. Instead, they suggested the media unit had grown too unwieldy and that the layoffs were designed to aid WPP Media's transformation into a more software- and AI-focused entity.
Regardless of the reason, it's clear that these cuts have left a trail of unsettled employees questioning their roles in the new-look WPP. As one former employee put it, "I think it's crazy how, just because of title, they're not kept in the loop."
*Update (May 9, 1:34 p.m. ET): This article has been slightly revised to adjust the tone and context of a quote that compared the company's handling of layoffs to that of the Soviet Union.
Contextual Snippets:
- The Soviet Union Comparison: While the comparison has been adjusted, the original quote in question compared the abrupt and impersonal nature of the layoffs to the Soviet Union's treatment of workers.
- "It's like something out of the Soviet Union. Every few years, they'd reset everything, and if you were lucky, you might be able to keep your job. But I keep waking up, knowing that no matter how good I am, if I'm not successful, I'm toast."
- WPP Media’s New Focus: With the rebranding and restructuring, WPP Media is seeking to streamline its global network by consolidating multiple agencies under a single brand and relying more heavily on technology and AI.
- The Role of Technology: The move toward automation and AI-driven solutions is resulting in a shift away from traditional media planning and buying roles, causing concern among affected employees about their future within the company.
- Unified Strategy: The consolidation of various WPP media brands aims to create a more unified strategy and centralized management, ultimately aimed at becoming a leaner, more agile player in the market.
In light of WPP's rebranding and restructuring, there are concerns among employees about the impact of technology and AI on traditional roles within the company, as WPP Media shifts towards a more automated approach. The abrupt and unprecedented nature of recent layoffs has left some former employees drawing parallels to the Soviet Union's treatment of workers.
