WPP PLC (LON:WPP) has taken another chunk out of costs as the global ad agency warned it is being hit by the impact of the coronavirus pandemic in all areas of its business.
Revenues fell by 10.1% a like-for-like basis in March and by 4.9% to US$2.8bn over the first quarter of 2020.
WPP said it had grown in all areas outside of China in the first two months of the year, but had seen declines of almost 10% in the UK and 15% in Germany in the past month. Greater China revenues fell by almost 30%.
Actions being taken to reduce costs further included voluntary pay cuts from over 3,000 senior executives, part-time working and some permanent job cuts, it added.
WPP has already suspended its 2019 dividend and share buyback programme.
Net debt halved to £2.1bn following the sale of a 60% stake in research house Kantar last year, with £4.4bn in cash and loan facilities.
Mark Read, chief executive, said there were some positive signs and in the past week it had started to prepare for the reopening of our offices when lockdowns start to lift, though this will be at a substantially lower capacity and with enhanced safety measures.
The group’s China operations are also now back to 90% occupancy, he added, while the group had won US$1bn of new business in the past three months.
“We have witnessed a decade's innovation in a few short weeks, with the way people meet, shop, work and learn increasingly reliant on technology,” he added.