WPP, the London-listed advertising and media group, eliminated 1,267 positions in the first half of the year — approximately 1.3 per cent of its total workforce — as revenue continued to decline.

Over the 12 months to June, the company has reduced its headcount by 6.4 per cent, bringing total staffing down to 104,083 employees. The cuts helped lower staff costs by £216m in the first half to £3.7bn, though an additional £51m was allocated to restructuring expenses.

WPP said part of the savings were "offset by a rebuilding" of its incentive pool, which more than doubled to £130m.

First-half revenue came in at £6.4bn, down more than three per cent year-on-year. Revenue less pass-through costs — a metric used by professional services firms that strips out expenses incurred on behalf of clients — fell nearly five per cent to £4.7bn. Operating profit dropped 2.7 per cent to £398m.

Despite the declines, shares in the group jumped 25 per cent following the update, as second-quarter revenue showed a softer decline compared with earlier in the year. The rally reflected investor encouragement that the rate of deterioration was easing rather than any return to growth.

Further Restructuring Planned for Second Half

WPP appointed former Microsoft executive Cindy Rose as chief executive last July, tasking her with leading a turnaround of the struggling firm. The group's stock has fallen more than 20 per cent over the past 12 months, and last year WPP dropped out of the FTSE 100 index, despite having been one of its largest constituents less than a decade ago.

The entry of major technology companies into the media-buying industry has intensified competitive pressure on WPP, culminating in the group losing its position as the world's largest advertising holding company to France's Publicis. The competitive shift reflects a broader restructuring of the advertising industry, where platforms such as Amazon, Google, and Meta have expanded their own ad-tech and measurement capabilities, while clients increasingly seek integrated digital and data-driven services.

In February, Rose unveiled a turnaround strategy called Elevate28, targeting £500m in cost savings by the end of 2028 and refocusing the business on its core media and advertising operations. The plan centres on eliminating duplication, reducing staff, and streamlining the company's portfolio of agencies.

The strategy includes a portfolio review, with WPP expecting to generate in excess of £200m in 2026 through the sale of non-core assets. Rose said the disposal process remains "ongoing" and that "more value" may remain for the group in certain divestments.

WPP is currently in the 'Stabilise' phase of the strategy, where it said it is on track for £100m in savings in 2026. The company projects full-year restructuring costs of £250m, with £190m attributable to the Elevate28 strategy and £60m tied to legacy programs.