WPP is preparing a major restructuring of its creative agencies as the company looks to simplify how it works with clients and respond to rapid changes driven by AI.
As reported by Reuters, the group plans to create a new structure called WPP Creative, which would bring its three main creative agency networks under one umbrella while keeping their individual brands in the market.
A New Structure for Creative Agencies
The proposed overhaul would place agencies such as Ogilvy, VML, and AKQA under a shared holding structure. The goal is to streamline how WPP presents its services to clients without removing the identity of each agency.
WPP Creative would sit alongside the company’s already integrated media and production divisions. Agencies are expected to continue operating independently even as they become part of a broader framework.
Pressure on Leadership
The restructuring marks one of the first major strategic moves under new CEO Cindy Rose, who took the role in September. Rose has said the company needs to move faster and adapt to changing client expectations, especially around data and AI driven services.
WPP has faced challenges over the past year. The company lost several major accounts, including Mars and Coca Cola North America, and its shares fell to long term lows. The overhaul is seen as an effort to rebuild momentum and simplify its offering to advertisers.
Market Reaction and Industry Context
News of the potential restructuring lifted WPP shares by about 2 percent at the open before settling closer to 0.9 percent, in line with the broader midcap market. The changes come after a recent market selloff that saw WPP stock drop more than 11 percent amid concerns about how AI could reshape agency business models.
The move reflects a broader shift across the advertising industry. Clients are asking for simpler structures, clearer data integration, and faster execution. Large agency networks are responding by consolidating operations and aligning teams around unified offerings.
What Comes Next
WPP has not officially commented on the plans, but the Financial Times report cited by Reuters suggests the new structure could be unveiled later this month.
If implemented, WPP Creative would signal a new phase for the company. The aim is not to remove agency brands but to present a clearer, more unified face to clients navigating an increasingly AI driven marketing landscape.
