So how many people is she laying off?

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likefunny
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As many as it takes to get her a nice, fat bonus.

like

Exactly this

You should ask on LinkedIn and see what she says.

funnylikesmart

WTF kind of made up thing is "macro volatility"? What a bunch of corp comm word salad.

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Literally

Said everything but anything

likefunny

HAHA so true

Back of the envelope math incoming. Yesterday's preliminary results show operating costs of £8,855M. Staff costs are typically 65% of operating costs in professional service companies, so that's £5,756M of staff costs. WPP has 99,000 employees worldwide, so that's £58,000 of costs per employee. If the company needs to save £500M, 65% of those savings will likely come from layoffs. So that is £325M of staff costs to cut.

£325M of staff costs at £58,000 per employee is 5,600 layoffs.

That's 6% of the workforce. Less brutal that the layoffs so far, but another hard year for the people who work in WPP agencies.

likehelpful

Hi GroupM1. Thank you for the context. 94,000 employees suggests £61,000 per employee. So WPP would need to lay off 5,078 people to hit its savings target. And that still sucks for the people affected.

like

Yikes

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She was quoted as saying they will find $676 million in savings. For comparison, Omnicom initially promised Wall Street $750 million post acquisition, and we’ve seen how that went. Question is: will they follow Omnicom’s model, or learn from their mistakes (also, WPP’s downsizing isn’t an acquisition, so probably not an apples-to-apples comparison)?

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BTW, I believe this entire plan is designed to buy her time. She was under tremendous pressure to make a big move to arrest the company’s decline. She’s quoted as saying that her plan will take 2 years to implement, which will give her some breathing room. Will investors give her that latitude? So far, the reaction has been negative.

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You’ll be fine, CCO.

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Probably not a WPP CCO lol

and where in the world is she making a video from?

Honest question… what momentum is she talking about?

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