Ad group WPP to axe 7,200 jobs

05 May 2009

Advertising and marketing group WPP is to axe 7,200 jobs this year, expected to include scores of posts in the UK. The company, which owns MediaCom, Metro Ecosse and BDG McColl in Edinburgh, has already cut around half this number from its workforce in an effort to combat tough conditions in the recession.

The business has suffered as difficult economic conditions lead companies to slash their advertising and marketing expenditure. Reports suggest more UK jobs could be affected as the firm looks to reduce its global staff number by six per cent to 106,000 by the end of 2009. Jobs in the weak markets of Europe and the US will also be slashed.

Last week, founder and chief executive Sir Martin Sorrell indicated that WPP's like-for-like revenue would probably fall by around 5 per cent this year, about double what he predicted two months ago. The firm said its UK and US markets had suffered the worse effects of the economic slowdown.

London-based WPP, whose clients include Ford and HSBC, saw income fall 5.8 per cent in the first three months of the year. However, there was no official comment on the latest round of job cuts.

"In the balance of 2009, the short-term focus will continue to be on balancing the likely fall in revenues against staff costs and headcount," the company said during the quarterly update. "The first half of 2009 will clearly be very difficult, with the second half, although continuing to be tough, likely to improve relatively."

However, it saw total revenue surge by 11 per cent in the first quarter thanks to an aggressive acquisition strategy. And it said Latin America, Africa and Eastern Continental Europe still showed like-for-like growth.