USA – Advertising giant Omnicom announced it will lay off more than 4,000 employees and restructure its agency portfolio, including retiring several major ad brands under its newly acquired Interpublic Group (IPG).
The acquisition, completed in November last year, positions Omnicom as “the world’s leading marketing and sales organisation,” the company said. The deal had received regulatory approval, including clearance from the European Commission, which confirmed it “does not raise competition issues” under the EU Merger Regulation.
According to the Financial Times, the merger has made Omnicom the world’s largest advertising agency by revenue, overtaking France’s Publicis and moving WPP into third place.
Massive lay-offs expected by year-end
Omnicom CEO John Wren confirmed on Monday that the total number of acquisition-related layoffs is expected to reach 4,000, with most cuts occurring by the end of December.
Business Insider reported that this represents roughly 3% of the combined workforce of 128,200 as of the end of 2024, based on regulatory filings.
Since the initial announcement of the deal, IPG has already cut 3,200 roles, while Omnicom has reduced about 3,000 positions. Last year, Omnicom outlined a “$750 million cost synergy target” tied to the merger.
“Together, we will be the go-to company that shapes how brands grow, people connect, and culture evolves,” Omnicom chairman and CEO John Wren said in a statement, as quoted by Business Insider.
Reuters reported that the layoffs will primarily affect administrative roles, with some leadership positions also impacted. After the cuts, the company expects roughly 85% of roles to be client-focused and 15% administrative. Omnicom projects that the financial benefits will exceed the $750 million in annual cost savings initially forecasted to investors.
End of iconic creative agencies
Omnicom also revealed plans to retire several long-standing creative agencies. The newly formed Omnicom Advertising division will now operate three creative agency networks: BBDO, TBWA, and McCann.
Executives told the Financial Times that DDB, founded in 1949 and led by adman William Bernbach, and MullenLowe will be integrated into TBWA. FCB, with a history dating back to 1873, will be folded into BBDO.
Some agencies, including McCann, OMD, FleishmanHillard, Golin, and Weber Shandwick, will remain intact.
It is worth noting that in early November, DDB Worldwide’s global CEO, Alex Lubar, made headlines when he left the company to join Jonny Baur’s brand consultancy, Fundamentalco. While Lubar confirmed his departure was “driven by his desire for a different kind of challenge,” speculation has emerged that his exit may also be linked to broader turbulence at Omnicom following the merger.
In Australia, DDB will merge into Clemenger BBDO under the leadership of DDB’s local bosses and new co-CEOs Sheryl Marjoram and Mike Napolitano. Former Clemenger CEO Lee Leggett will become chief customer officer at Omnicom Oceania, focusing on client experience and integration across Australia and New Zealand.
In New Zealand, DDB and FCB will merge into McCann New Zealand, led by Priya Patel and Paul Wilson. Clemenger Wellington and FCB Wellington will become McCann Wellington, with local leadership to be announced soon.
Within Omnicom Media Group, OMD, PHD, Initiative, MediaHub, UM, and Hearts & Science will remain as distinct businesses.
In the new Omnicom, John Wren will continue as chairman and CEO, Phil Angelastro serves as EVP and chief financial officer, and Philippe Krakowsky and Daryl Simm will act as co-presidents and COOs.
Omnicom president and COO Daryl Simm will now share operational leadership with Philippe Krakowsky, former CEO of IPG, while Angelastro remains CFO of the combined group.
MARKETECH APAC will continue to monitor updates on Omnicom’s acquisition and the ongoing changes within its agency network.
