WPP’s ‘Elevate28’ reset puts WPP Open at the core, targets integration and cost savings

New Delhi: WPP has linked its new multi-year strategy ‘Elevate28’ to a tough set of FY25 preliminary numbers, as the group looks to simplify its structure, rebuild execution and reposition itself as an AI-enabled marketing partner.

In the FY25 snapshot shared in its strategy update deck, WPP reported a 5.4% like-for-like decline in net sales, with the company attributing the fall to client losses and client spending cuts. 

Headline operating margin stood at 13.0%, down from the prior year, while headline diluted EPS fell to 63.2p.

The immediate peg for ‘Elevate28’ is performance repair, not reinvention. WPP’s own “diagnostic” slide says it has not consistently kept pace with evolving client needs, and places the gaps across strategic execution, organisational structure, client proposition and portfolio discipline.

The strategy response is structural. WPP said it will move from a holding company model to a single company, organised into four operating units—WPP Media, WPP Creative, WPP Production and WPP Enterprise Solutions—across four regions: North America, Latin America, EMEA and APAC.

A key unifier is WPP Open, which WPP positions as an “agentic” platform that connects capabilities and workflows across the organisation. 

The WPP Analysts presentation frames the shift as moving from siloed and disparate products to one platform and process, and from “finding audiences” to “architecting growth”.

The business case is also a cost-and-focus play. WPP has targeted £500 million of savings to be delivered by 2028, and said it expects cash costs of around £400 million over two years to drive the transformation. It said savings will be redirected into growth accelerators, including media, enterprise solutions, high-velocity production and commerce.

The plan is staged in three phases. WPP said 2026 will be about stabilising net new business. It also guided that like-for-like revenue, less pass-through costs, is expected to be down mid to high-single digits in the first half of 2026, with an improving trajectory in the second half.

For 2026, WPP’s guidance in the deck also includes a headline operating profit margin range of 12.0–13.0% and adjusted operating cash flow before working capital of £0.8–£0.9 billion.

In 2027, WPP said it is targeting a return to positive like-for-like growth during the year, helped by an integrated offer spanning media, creative, production and enterprise solutions. The “accelerate” phase begins from 2028, with WPP aiming for faster growth, improved margins and stronger cash conversion.

The deck makes clear that the cost effort is also meant to fix delivery. A slide titled “targeted actions” says the programme is focused on improving execution as much as reducing cost, with levers spanning real estate rationalisation, de-duplication across corporate functions and organisational design changes.

FY25 results provide context for why WPP is prioritising simplification. The presentation attributes the margin decline to negative operating leverage and higher severance costs, with severance action “primarily at WPP Media”. It also notes headcount at around 99,000 in 2025 versus around 108,000 in 2024, alongside reduced freelancer use.

Performance was uneven across client sectors. The WPP presentation shows healthcare and pharma growing 2.1%, while telecom, media and entertainment fell 10.1% on a like-for-like basis.

On balance sheet context, WPP reported adjusted net debt of £2,167 million at December 2025 and said it retains an investment-grade credit rating. It also cited available liquidity of £4,384 million and highlighted a $2.5 billion committed revolving credit facility that remains undrawn.

A distinctive part of the ‘Elevate28’ framing is how WPP is trying to change the conversation on value. The deck positions the shift as moving “from agency to trusted growth partner”, with integrated solutions that optimise total marketing investment and higher-quality revenues linked directly to client outcomes.

It also signals a reporting reset aligned to the new structure. WPP’s slide on the “evolution of reporting” shows a 2025 revenue-less-pass-through split of 41% WPP Media, 40% WPP Creative, 13% WPP Enterprise Solutions and 6% WPP Production.

The sharper, underlying peg is this: WPP is treating AI not as a bolt-on capability, but as the organising layer for integration, cost discipline and measurable client outcomes. The company is betting that a single-company model, a unified platform, and a tighter operating design are the only way to compete for larger, more complex, multi-market mandates in an AI-heavy marketing cycle.