WPP Faces Exodus of Top Creative Talent Amid Struggles for Recovery
WPP, once a dominant force in the advertising industry, is currently experiencing a significant departure of its top creative staff. Many employees are losing faith in the company’s efforts to turn around its fortunes, leading to a growing sense of uncertainty and fear among the workforce.
Recent departures have been likened to being on “a sinking ship,” with some employees expressing concerns about the company’s future. The exodus has been particularly noticeable among senior executives, including Mark Read, who stepped down as CEO in August after seven years at the helm. His successor, Cindy Rose, a former Microsoft executive, has initiated a comprehensive review of WPP’s strategy and has enlisted the help of McKinsey to restructure the business.
However, the rapid changes at the top have left many employees anxious about their positions and looking for opportunities elsewhere. A former employee, who chose to remain anonymous, stated:
“The heavy hitters, the people who had the talent to get the job done – all of those people left. People are scared. I think the wheels started to come off a long time ago. The company is so without energy. Everybody is looking at their options. Some desperately want to leave. It’s an open conversation among everybody who is still there.”
Key Departures and Industry Reactions
Several high-profile departures have further fueled the perception of instability within WPP. In addition to Read, other leaders have exited the company, including Lindsay Pattison, the chief people officer, who left after 16 years, and Chris Wade, the communications chief, who stepped down after 13 years. Nicolas Bidon, head of the performance marketing division Nexus, also left in June, while Andrew Scott, the chief operating officer, is set to leave at the end of the year.
These exits have not gone unnoticed by WPP’s competitors, who are reportedly taking advantage of the situation. A top executive from another advertising firm told The Mail on Sunday that rivals are actively trying to attract talent from WPP.
“Many of the leading creatives are going to Publicis, and to the independent agencies. We’re in talks with lots who want to leave. It seems the layoffs have made morale very low among staff, especially as the share price is no longer an incentive to stay.”
Cost-Cutting Measures and Financial Challenges
In an effort to reduce costs, WPP announced that it had cut 7,000 jobs over the past year, which accounted for 4% of its workforce. This move was aimed at saving hundreds of millions of pounds. However, these cuts have not been enough to halt the decline in the company’s share price, which has fallen by 64% over the past 12 months. As a result, WPP was removed from the FTSE 100 index in a quarterly reshuffle.
In October, Cindy Rose described WPP’s performance as “unacceptable” and pledged to take action to address the falling share price and sales. One of the core elements of her turnaround plan involves the widespread adoption of artificial intelligence (AI) technology. However, this initiative has faced skepticism from some members of the creative team.
“The way WPP speaks about AI is in these really lofty terms and as some sort of saving grace that is going to be gifted to clients. There’s no real interrogation into how this will work. We hear a lot of ‘you must use AI – lead the way in terms of AI’, but no deep-dive into what that means.”
Concerns Over Leadership and Strategy
Some analysts believe that Rose may not have enough time to implement her plans effectively. Claire Holubowskyj of Enders Analysis noted that many of the issues facing WPP have been developing for some time, and the arrival of a new CEO has not led to a significant improvement.
“Rose needs time to get going, but the business does not necessarily have lots of time to give her as the results have been so negative for a while.”
She also pointed out that the increasing focus on AI has made creative staff uneasy about the future, as it raises questions about the role of traditional creatives in driving ad campaigns.
Mixed Reactions Within the Company
Despite the challenges, some insiders remain optimistic about WPP’s potential for recovery. A source close to the company said:
“People within are ready for change. They know it’s going to take time to get back to the top but are buoyed by the momentum of the last few months, including senior leadership appointments and significant client wins. Turnarounds aren’t easy but the opportunity is massive and people are energised by the fighting talk from leadership who knows what it takes to win.”
