WPP Downgrades Forecasts as CEO Cindy Rose Calls First-Half Performance “Unacceptable”
LONDON – WPP, teh global advertising and marketing giant, has lowered its full-year profit guidance for the second time in 2023 following an 8.4% decline in revenue, prompting newly appointed CEO Cindy Rose to publicly deem the company’s performance “unacceptable.” The news arrives as Rose, who took the helm from Mark Read in september, undertakes a strategic review aimed at reversing the holdco’s recent struggles.
The downturn reflects significant challenges faced in the first half of the year, including the loss of major clients like mars to competitor Publicis Groupe and a restructuring of WPP’s media division that resulted in layoffs. Revenue at WPP Media specifically fell 5.7%, while the crucial North American market experienced a 6% drop, a region poised to become even more competitive with Omnicom Group’s impending acquisition of IPG.
Despite the disappointing results, Rose emphasized ongoing efforts to revitalize WPP, highlighting investments in artificial intelligence and a simplification of the company’s operational structure. These initiatives include a $400 million partnership with Google and the launch of WPP Open Pro, a self-service AI platform designed to empower marketers with campaign building, creative asset development, and activation capabilities.
“There is a lot to do,and it will take time to see the impact,but in my first 60 days,we are already moving at a pace with some initiatives already announced and more to come,” Rose stated. “We no what it takes to win: we are optimistic, energized, and confident that we’re building the right plan and the right culture to secure a bright future for WPP, our people, our clients, and our shareholders. We look forward to sharing more details early in the new year.”