WPP CEO Cindy Rose cites ‘excessive complexity’ behind underperformance

New Delhi: WPP CEO Cindy Rose said the group’s recent underperformance was driven by internal factors, including “excessive organisational complexity”, the absence of an integrated operating model and inconsistent strategic execution.

“Our recent underperformance has been driven by excessive organisational complexity, a lack of an integrated operating model and inconsistent strategic execution. While disappointing, I see huge potential as these issues are all within our power to fix and we’re already making great progress,” Rose said.

Her comments come as WPP announced ‘Elevate28’, a multi-year strategy update aimed at simplifying the group, integrating its client offer and restoring growth.

WPP said it will move from a holding company structure to a single-company model, positioning the shift as a way to deliver fully integrated, AI-enabled solutions to clients.

As part of the restructure, the company will operate through four core units—WPP Media, WPP Creative, WPP Production and WPP Enterprise Solutions—across four regions: North America, Latin America, EMEA and APAC.

Rose said the plan is designed around a clear mission for an AI-led marketing era. “My first six months as CEO have only reinforced my conviction that WPP is an extraordinary company. As our clients navigate uncertainty, AI disruption and macro-volatility, we're looking ahead with a clear and focused mission: to be the trusted growth partner for the world's leading brands in the era of AI,” she said.

She said the strategy is built to stabilise the business, restore growth and create investment headroom, while also improving shareholder outcomes. “Today we are unveiling a bold plan for a simpler, more integrated WPP. Our intention is to stabilise the business, return to organic growth, create capacity to invest in the future and deliver attractive returns for our shareholders,” Rose said.

WPP Open will sit at the centre of the operating model, with Rose describing it as the platform that connects teams and delivery across the organisation. “WPP will become a single company, streamlined into four operating units across four regions, all unified by our pioneering agentic marketing platform, WPP Open,” she said.

On the financial plan, WPP said a key target under Elevate28 is £500 million of gross annualised cost savings by 2028, driven by simplification, portfolio rationalisation and a lower-cost operating structure. 

The company said it expects total cash costs of around £400 million, phased over two years, to deliver the transformation, and that it will reinvest a significant portion of savings into higher-growth areas.

WPP also said its client proposition will be led with media at the centre of an integrated offer, alongside next-generation creative and production capabilities and enterprise solutions aimed at partnering clients on AI transformation.

Rose said WPP has the assets to execute the reset, pointing to talent, capabilities, technology and partnerships, along with the group’s scale for multinational clients. “We have everything we need to succeed: exceptional talent, world-class capabilities, trusted data and technology solutions and groundbreaking partnerships, as well as the scale and reach to service the most complex multi-national, multi-brand clients in the world,” she said.

She added that early decisions have started to show momentum. “The momentum we are seeing from the decisive action we’ve already taken gives me the confidence that we’re on the right path to creating a WPP that is fit for the future and built to win,” Rose said.