IPG beats Q3 estimates, cuts 800 jobs as Omnicom merger nears completion

New York: Interpublic Group (IPG) beat third-quarter expectations even as revenue slipped year-on-year and said it reduced about 800 roles in Q3 while trimming real estate costs ahead of its pending all-stock merger with Omnicom.

IPG reported revenue of $2.49 billion for the July–September quarter, above Street forecasts. 
Diluted EPS came in at $0.34 versus $0.05 a year ago, helped by cost discipline and steadier client spend in media and healthcare. Organic revenue declined 2.9%; total revenue fell 5.1% from the year-ago period. 

Management said demand was firmer in healthcare, food and beverage, financial services and technology/telecom, which helped offset pressure from prior-period client losses in categories such as retail and automotive. 

The holding company eliminated roughly 800 positions in the quarter and has now cut about 3,200 roles year-to-date. IPG also vacated approximately 135,000 square feet of office space in Q3 as it streamlines its footprint. It expects total restructuring charges of $450 million to $475 million through the end of next year, a portion of which will be non-cash. 

IPG pointed to ongoing investment in “Interact,” its AI- and data-driven platform that connects creative, media and commerce workflows, part of a broader push to personalise at scale. The company also highlighted a recent global assignment from Bayer’s Consumer Health division covering creative, production and media. 

The results arrive with the Omnicom–IPG merger nearing completion. Regulators in the US and UK have cleared the transaction; EU approval remains pending. The parties have been guided to closing by late November or by year-end, subject to remaining reviews. 

IPG said the combination of tighter costs, an expanding AI stack and exposure to relatively resilient verticals helped it outperform expectations in the quarter, even as macro headwinds and competitive pressure from Big Tech persist.

“Following the close of the transaction, Omnicom shareholders will own 60.6% of the combined company and IPG shareholders will own 39.4%, on a fully diluted basis. As a result of the merger, we will cease to be a publicly traded company,” stated the company.