What happened
- On August 6, 2026, WPP presented its first-half results. Revenue less pass-through costs was 5 billion pounds, 4.7% less than a year earlier.
- Headcount fell from 105,900 people in the first half of 2025 to 97,400. That’s 8,500 fewer jobs, 8.1% in twelve months.
- CEO Cindy Rose told Digiday that the time-and-materials billing model probably isn’t sustainable in the long run, because AI makes it possible to do the work faster and with fewer people.
- Of all the group’s accounts, only one has so far adopted outcome-based pay: Jaguar Land Rover. Rose described it as a one-off and estimated the transition will take a few years.
Why it matters
- The AI efficiency argument has already cost 8,500 jobs, while the business model that justifies it has one adopter. The cost structure moved before the revenue structure did.
- For any advertiser renegotiating a marketing services contract, the useful fact is that gap. Whoever signs by the hour keeps paying for an input their provider says is on its way out.
- The cost of models has entered the income statement. CFO Joanne Wilson gave no figures for spending on tokens and explained that the company is evolving its business model to reflect the mix of people and technology. That spending is going to show up on some line of the invoice.
- WPP is no longer the industry’s largest employer. Omnicom and Publicis each have more than 100,000 employees.
The number
1. The number of brands that pay WPP for results rather than hours.
Context
The cost-cutting plan targets 500 million pounds over three years. In 2024, WPP committed to investing 300 million pounds a year in AI and deployed its internal platform in production, planning and media operations.
What’s next
- Before the end of 2026, WPP expects to recover 200 million pounds by selling units it defined as non-core. Wilson anticipated more sales in 2027.
- Rose set a return to organic growth for some point in 2027.
- There will be more headcount adjustments as the cost-cutting plan advances.
Bottom line
Forrester projected a net 15% reduction in U.S. advertising employment by the end of 2027, compared with an estimate of 7.5% two years earlier. The projection doubled in the same period in which the promise of charging for results signed its first contract.