New WPP boss criticises ‘unacceptable’ performance after profit warning

Cindy Rose, WPP’s new chief executive, says numbers are ‘simply not where we would like them to be’ - Jason Alden/Bloomberg

The new boss of WPP has vowed to turn around the struggling advertising giant after admitting that the company’s recent performance had been “unacceptable”.

Cindy Rose, the former Microsoft UK chief who took over the advertising company last month, has announced plans for a strategic review following a fresh profit warning.

The overhaul will be aimed at “dramatically simplifying” the business, she said, raising the prospect of further job cuts after WPP slashed 7,000 roles since last summer.

WPP declined to comment on whether the review would lead to job losses, saying it would share details of the new strategy early next year.

It came as the London-listed ad giant reported an 11pc drop in revenues in the third quarter to just under £2.5bn.

This was driven by a downturn in its media division following client losses earlier in the year, including Coca-Cola’s North American business.

WPP, which owns agencies including Ogilvy and Grey, issued a fresh profit warning and downgraded its revenue forecasts to a decline of between 5.5pc and 6pc, compared to previous forecasts of between 3pc and 5pc.

Shares in WPP dropped 12pc following the trading update, taking their total decline for the year to more than 60pc. The ad group now has a market value of around £3.5bn.

Ms Rose’s arrival comes at a torrid time for WPP, which has struggled to adapt to changes in an advertising industry now dominated by tech giants such as Facebook and Google, as well as the recent growth of artificial intelligence.

The British company last year lost its crown as the world’s largest advertising company by revenue to French group Publicis, while it must also contend with a major new rival following the $30bn (£23bn) merger of its two other largest competitors, Omnicom and Interpublic.

Ms Rose said the numbers were “simply not where we would like them to be”.

She added: “I think WPP has been moving in the right direction generally, I just think we haven’t gone far enough or fast enough in adapting to the evolving needs of our clients.

“While today’s results are unacceptable, my ambition for WPP is sky-high and we are committed to doing the hard work it will take to turn this business around.”

Ms Rose’s pledge to simplify WPP echoes her predecessor Mark Read, whose seven years in charge of the advertising behemoth were dominated by efforts to slim down its sprawling network of agencies.

The former Microsoft boss has also vowed to embrace AI amid concerns brands could use the technology to sidestep the role of the traditional ad agency entirely.

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