Omnicom Group is set to implement significant job cuts following its acquisition of Interpublic Group (IPG), aiming to achieve $750 million in cost savings. A substantial portion of these reductions will come from workforce downsizing, particularly in middle management, regional roles, and back-office functions. Employees directly involved in client services and revenue generation will remain largely unaffected.
Chairman and CEO John Wren outlined the company’s cost-cutting strategy during a recent earnings call. The plan involves streamlining operations by eliminating redundant roles and third-party expenses across its global network. Omnicom expects to reduce corporate expenses by 40%, leading to approximately $200 million in compensation savings and $100 million in general and administrative costs.
“We will adopt an approach focused on selecting the best individuals across the organizations irrespective of their current affiliation,” Wren said. He added that the company will consolidate leadership under a Unified Practice Area structure, eliminating overlapping positions to save over $130 million.
Following the acquisition, the combined entity—retaining the Omnicom name—will generate 85% of its revenue from its top 10 markets, with the rest coming from 40 additional markets. While IPG’s agency brands will continue operating under Omnicom Advertising Services (OAS), they will be led by a single OAS leader in major markets, reporting to regional OAS heads. Other marketing and advertising services from IPG will be integrated into Omnicom’s existing practice areas.
Shareholders from both companies are scheduled to vote on the acquisition during a special meeting on March 18, 2025.
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