WPP forms four core units; targets £500m annual cost savings by 2028

New Delhi: WPP on Thursday announced ‘Elevate28’, a multi-year strategy update aimed at simplifying the group, integrating its client offer and restoring growth.

The company said it will move from a holding company structure to a single-company model, in what it described as a shift to deliver fully integrated, AI-enabled solutions for clients.

As part of the restructuring, WPP said it 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.

The plan sets a three-stage roadmap. WPP said 2026 will focus on stabilising net new business performance, alongside executing cost savings and rationalising its portfolio.

In 2027, the company said it will embed a transformed go-to-market strategy supported by a simplified operating model. It said it aims to return to organic growth during 2027, backed by a fully integrated offer spanning media, creative, production and enterprise solutions.

From 2028 onward, WPP said it expects to deliver accelerated and “high-quality” growth, supported by an AI-enabled operating model, improved margins and stronger cash conversion.

A key financial element of Elevate28 is a targeted £500 million of gross annualised cost savings by 2028. WPP said the savings will come from simplification, portfolio rationalisation and a lower-cost operating structure.

To deliver the transformation and achieve the savings target, WPP said it expects total cash costs of around £400 million, phased over two years. It said a significant portion of savings will be reinvested into higher-growth areas.

WPP said its client-facing strategy will be led by media at the centre of its integrated proposition. It also said it will build next-generation creative and production capabilities, while scaling enterprise solutions to partner with clients on AI transformation.

On technology and data, WPP said it will connect capabilities through WPP Open and differentiate with data solutions through Open Intelligence, while expanding strategic technology and data partnerships.

The company said it will follow disciplined capital allocation, with a focus on maintaining an investment-grade balance sheet and delivering returns to shareholders. It also said it will focus its portfolio to reduce leverage and create capacity to invest in growth.

WPP said the Elevate28 plan is designed to simplify how the company operates and sells, while improving execution and building a high-performance culture that attracts and retains talent.