In a business update email sent at midday New York time and obtained by The Drum, CEO Brian Lesser outlined GroupM’s plans to transition to a ‘single operating model’ and indicated the forthcoming ‘sunsetting’ of ‘agency-specific titles’ across various markets.
GroupM office
GroupM chief executive officer Brian Lesser has told staff there will be layoffs as the WPP media buying arm embarks on a significant global restructuring to unify its operations.
Following widespread reports today that GroupM will be rebranded as WPP Media, chief executive Brian Lesser penned an internal memo acknowledging the company will be “moving to a single operating model that brings the best of GroupM to our clients, with one voice in the market, and more opportunity for our people.”
In the note, seen by The Drum, Lesser writes that the business’s success relies on it becoming “a stronger, more connected company” but warns this will require “difficult decisions” to “improve team structure” and “reduce overlap,” noting that these changes will “affect some roles” across markets.
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He said the reorganization will result in the company, which currently comprises the agencies Mindshare, Wavemaker, EssenceMediacom and T&Pm, “evolving the role of our agency brands to house dedicated client teams” but they will “no longer operate as distinct business units.”
This would mean “sunsetting agency-specific titles that can create barriers to working together and moving towards a unified naming structure that reflects our commitment to operating as one company,” Lesser added.
Lesser, who rejoined GroupM as CEO in September 2024, said the company had been “navigating profound change” within the advertising industry. He emphasized that the broader transformation is anchored in five strategic priorities: “Collaboration, Data & Technology, Innovation, People, and Organizational Design.”
These focus areas, according to Lesser, are designed to “futureproof” the business, which he described as “pioneers in AI” thanks to the investments made to build the WPP Open platform.
On staff cuts, he acknowledged that the impact would vary by region, with conversations beginning in some markets as early as this week. The company, which employs around 40,000 people worldwide, aims to complete the transition by mid-year and Lesser pledged staff would have “extended access to WPP’s Employee Assistance Program”.
Responding to “speculation about our brands in the news” following mounting speculation the GroupM name will be retired, Lesser told staff they can “expect to hear about major business updates directly from me”.
He concluded the message by expressing that the organization is “building a stronger, more competitive company” poised to set “the standard as the most modern, strategic, and technology-driven media organization in the AI era.”
Kate Rownlinson, GroupM UK’s chief executive officer, followed up on Lesser’s statement by sharing that it had already made some way into the “transformation in the UK market”, having consolidated teams across Nexus, Choreograph, Finance, People, Growth and Marketing.
She added that the “impact to team members” is by far the most “difficult part” of this change and that the “top priority” will be to support employees in the weeks to come.
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WPP has put GroupM, which is responsible for more than $60bn in annual media spend, at the heart of its turnaround plan after a tough trading period. The holding company’s year-on-year revenue declined 5% in Q1.
Earlier today, a WPP spokesperson told The Drum, “We don’t comment on speculation” when asked about the rumored GroupM rebrand.
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GroupM
GroupM is the world’s leading media investment company with a mission to create a new era of media where advertising works better for people. Responsible for more...
WPP
WPP plc is a British multinational communications, advertising, public relations, technology, and commerce holding company headquartered in London, England. It was...