The beleaguered advertising group WPP has announced a radical restructure to counter the threat posed by artificial intelligence, cutting jobs and merging its legacy agencies.

In a desperate bid to remain competitive in an industry being aggressively disrupted by automation, London-based advertising behemoth WPP has unveiled a sweeping corporate shake-up. The move signals a harsh new reality for creative professionals worldwide, as the integration of Artificial Intelligence forces a brutal recalibration of the workforce.

This restructuring is not merely a corporate cost-cutting exercise; it is an existential pivot. The implications of WPP's strategy will inevitably ripple across its global network, directly impacting its significant operational hubs in East Africa and redefining the future of digital marketing in Kenya.

A £500m Strategy for Survival

Aiming to transform into a "simpler, lower-cost, AI-enabled business," WPP has laid out an aggressive plan to achieve annual savings of £500m (approx. KES 92.5bn) by the year 2028. Implementing this massive overhaul will incur restructuring costs of £400m (approx. KES 74bn) over the next two years.

A significant proportion of these unprecedented cost cuts will be realized through severe job reductions. While the exact number of redundancies remains unspecified, industry analysts warn that the scale of the financial savings points to thousands of job losses globally.

Historically, WPP has only initiated cuts of this magnitude during global crises, notably shedding 7,200 jobs during the 2009 recession and 7,000 during the 2020 pandemic. The current cuts highlight that the AI revolution is viewed internally as an equally disruptive force.

Merging Legacy Advertising Titans

Central to the restructuring is the consolidation of WPP's legendary creative agencies. Powerhouses including Ogilvy, VML, and AKQA will be merged under a single umbrella entity, WPP Creative. This ends decades of distinct agency cultures in favor of streamlined efficiency.

Furthermore, the troubled company will establish a stand-alone division dedicated entirely to partnering with clients on AI transformation. This signals a shift from traditional creative services toward tech-driven data solutions.

• Regional Reorganization: The group will be split into four distinct businesses: North America; Latin America; Europe, Middle East and Africa; and Asia Pacific.
• AI Investment: A large chunk of the savings will be reinvested into high-growth, AI-centric technological capabilities.
• Client Retention: The strategy aims to stem a growing exodus of clients to faster, more agile, tech-enabled rivals.

Impact on Kenya's Silicon Savannah

For Nairobi's vibrant creative sector, often dubbed the Silicon Savannah, WPP's global pivot is a massive warning sign. WPP holds a significant stake in WPP Scangroup, the dominant marketing services group in East Africa.

As WPP consolidates its EMEA operations and mandates AI integration, Kenyan copywriters, graphic designers, and media buyers face an uncertain future. The automation of content generation and predictive data analytics threatens to render many entry-level and mid-tier creative roles obsolete.

However, it also presents a unique opportunity. East African creatives who rapidly upskill in prompt engineering, machine learning integrations, and AI-driven campaign management will find themselves highly sought after in WPP's newly structured, tech-forward ecosystem.

Unveiling a Bold, Fit-for-Future Plan

WPP Chief Executive Cindy Rose addressed the drastic measures with an eye on corporate survival. "We are unveiling a bold plan for a simpler, more integrated WPP that's fit for the future," Rose stated.

Employing approximately 100,000 staff globally, the London-listed firm has struggled to match the data capabilities of its fiercest rivals, losing its crown as the world's biggest advertising group by revenue to French rival Publicis Groupe in 2024.

"Adapt or perish is the new mandate," an industry insider observed. As WPP executes its radical shake-up, the global advertising landscape braces for a permanent, AI-driven paradigm shift.