WPP Outlines Transformation Plans

Mark Read

Mark Read

December 11, 2018 - Steve McClellan of MediaPost writes: WPP said today that it is evaluating numerous “expressions of interest” in its Kantar research division and that if a deal is struck — the holding company intends to keep a minority stake in the asset — it is expected to be announced in the second quarter of next year.

The company said today it would incur restructuring costs of £300 million over the next three years that would deliver estimated annual savings of £275 million by the end of 2021. About half of those annual savings will be reinvested in the business.

The company’s simplified offer going forward will focus on four areas: communications, experience, commerce and technology. Those four areas already represent about 25% of the firm’s revenue.

“What we hear from clients is very consistent,” stated WPP CEO Mark Read [pictured]. “They want our creativity, and they want us to help them transform their business in a world reshaped by technology…We are fundamentally positioning WPP as a creative transformation company with a simpler offer that allows us to meet the present and future needs of clients.” More...