WPP Cuts Jobs After New Profit Warning, Shares Sink

WPP, the world’s second-largest advertising group, issued its second profit warning of the year, causing its shares to plunge as much as 18% and hit a 16-year low. The company revised its 2025 like-for-like revenue outlook to a 3–5% decline and forecasted a significant reduction in operating profit margins, citing rapid AI-driven sector disruption, worsening economic uncertainty, and sharply reduced client spending. WPP also announced a 3.5% reduction in headcount in response to the deteriorating business outlook. CEO Mark Read, who will step down by year-end, noted that June's performance was worse than expected and warned that these negative trends are likely to persist. The company has suffered major client losses, including Coca-Cola and Paramount, and underperformed in key markets like China. Rival agencies Omnicom and Interpublic also saw share declines, highlighting deepening anxiety over the ad sector’s future.