WPP plc announced a comprehensive restructuring plan, dubbed “Elevate28,” that will merge all of its agencies into a single operating company and reorganise the business into four units—WPP Media, WPP Creative, WPP Production and WPP Enterprise Solutions. The move, led by newly appointed chief executive Cindy Rose, is designed to simplify the company’s structure, cut operating costs and position WPP for a return to organic growth in 2027.
The plan sets a target of £500 million in gross annualised cost savings by 2028, with £400 million earmarked for cash‑cost reductions over the next two years. The remaining £100 million will be reinvested in high‑growth areas such as AI‑driven media planning and creative services. The cost‑saving target reflects the company’s need to offset a 8.1% decline in FY 2025 revenue to £13.55 billion and a 71.2% drop in headline operating profit to £382 million.
Central to the restructuring is the WPP Open platform, an AI‑enabled system that will unify creative, production and media capabilities across the new units. By consolidating its technology stack and reducing organisational complexity, WPP aims to strengthen its competitive position against rivals such as Omnicom, Interpublic and Publicis. The platform is expected to accelerate the company’s ability to deliver integrated solutions to clients and to create new revenue streams.
Management highlighted that the company’s FY 2025 results—an 8.1% revenue decline and a 71.2% fall in headline operating profit—were driven by client assignment losses, cuts to client spending and macroeconomic pressures. “Our underperformance has been driven by excessive organisational complexity and inconsistent strategic execution,” Rose said. “We are already making great progress in simplifying the business and investing in the future.”
Investors initially reacted with concern over the scale of the restructuring and the associated one‑off costs, but sentiment improved as the market weighed the long-term benefits of a single‑company model and the potential of the AI platform. Analysts noted that the cost‑saving target and the focus on high‑growth areas signal confidence in WPP’s ability to rebuild margins and achieve sustainable growth from 2028 onward.
The restructuring also includes a significant dividend adjustment, with the proposed final dividend for 2025 cut to 7.5p per share, bringing the full‑year dividend to 15.0p—down from 39.4p a year earlier. The reduction is intended to free cash for investment in the new operating model and the AI platform.
Overall, the “Elevate28” plan represents a fundamental shift for WPP, moving from a holding‑company structure to a single, AI‑driven operating company. The plan’s success will hinge on the company’s ability to execute the cost‑saving program, integrate its technology stack, and deliver compelling AI‑enabled services to clients in a highly competitive market.
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