Advertising giant WPP PLC (LSE:WPP) has trimmed its global workforce by 3,000 roles in the past year to reduce operating costs at a time when industry sales are failing to show momentum.
According to interim results posted on Wednesday, WPP’s headcount was 111,000 as of 30 June, down from 114,000 at the same point in 2023.
“Staff costs… were down 3.3% compared to the prior period, reflecting higher wage inflation offset by lower headcount as a result of the actions we have taken to mitigate the top-line decline,” said the group.
Year on year, WPP’s revenues grew just 0.1% to £7.23 billion in the period, reflecting stagnant advertising budgets from its blue-chip client base.
Cost-saving measures meant operating profit improved 38% to £423 million on a much-improved 5.9% margin (compared to 4.2% in half-year 2023).
WPP kept its interim dividend unchanged at 15p.
WPP exits FGS
WPP also announced that it will sell its majority stake in FGS Global, a strategic communications and advisory firm, for $1.7 billion.
WPP will use the proceeds to help manage its debt.
“Together with the management of FGS we have built a world-leading strategic communications and advisory group, creating considerable value for all stakeholders,” said chief executive Mark Read.
“We have achieved an attractive price, enabling WPP to accelerate the crystallisation of the significant value created.
“This also provides WPP with greater financial and management flexibility as we continue to grow our core business including Burson and Ogilvy Public Relations which give our clients access to world-class public relations services.”