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WPP to merge ad agencies and cut jobs in radical shake-up to counter AI threat

about 2 hours ago
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The beleaguered advertising group WPP has announced a radical restructure to counter the threat posed by the AI revolution, including merging its ad agencies and cutting jobs,Aiming to be “a simpler, lower-cost, AI-enabled business”, the London-based company laid out plans to achieve £500m of annual savings by 2028, at a cost of £400m over two years,A significant proportion of the cost cuts are expected to come through cutting jobs,The company did not specify how many roles would be cut,Since its inception in the mid-1980s, the steepest cuts WPP has made were 7,200 jobs as a result of the global advertising recession in 2009, and 7,000 in 2020 because of the impact of the Covid pandemic.

A large chunk of the savings will be reinvested into “high-growth” areas, it said on Thursday.The troubled company will set up a standalone division to partner with clients on AI transformation, as it reorganises the group into four regional businesses: North America; Latin America; Europe, the Middle East and Africa; and Asia Pacific.Its ad agencies – Ogilvy, VML and AKQA – will be merged under the WPP Creative umbrella as part of the plan.Cindy Rose, the chief executive, said the company was “unveiling a bold plan for a simpler, more integrated WPP that’s fit for the future”.London-listed WPP, which has struggled to stem a growing exodus of clients and is racing to match the AI and data capabilities of rivals, employs about 100,000 staff globally.

Rose, who signalled job cuts on arriving last year, added: “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,”Her comments came as WPP reported a 3,6% drop in comparable revenue to £13,6bn for 2025, and a 26% fall in profit before tax to £1.

1bn,Last week the US rival Omnicom, which completed a $13bn takeover of the rival Interpublic in November, doubled its target for annual cost savings to $1,5bn,The announcement, which included savings of $1bn by reducing “labour costs” by 2028, cheered investors, which sent its share price soaring 15%,WPP, which spends almost £8bn annually on staff costs, is fighting for survival with a market value languishing at £3bn.

The company, which only nine years ago was valued at £25bn, has seen its share price slump almost two-thirds over the last year,After a series of profit warnings the company fell out of the FTSE 100 after nearly 30 years at the end of last year, having lost its crown as the world’s biggest advertising group by revenue to the French rival Publicis Groupe in 2024,Earlier this month, new data showed UK advertising agencies had their biggest annual exodus of staff last year, led by younger workers, as artificial intelligence tools threaten to replace workers and force the industry to cut jobs and costs,
societySee all
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Ed Davey accuses care home trustee of embezzlement amid watchdog inquiry

Ed Davey has accused a trustee of a learning disability care home of embezzlement and called for watchdogs to take over the charity to resolve a crisis he described as “one my worst nightmares”.The Liberal Democrat leader’s intervention at prime minister’s questions came hours after the Guardian revealed the Charity Commission had opened a serious inquiry into concerns around financial mismanagement and potential misuse of funds at William Blake House.Families of residents at the Northamptonshire-based care home raised the alarm with the authorities after discovering that it faced imminent closure after running up a £1.6m unpaid tax bill and paying its chair of trustees £1m in consultancy fees.The home, one of only a handful of specialist providers of its kind in the country, cares for 22 adults with severe learning disabilities

about 15 hours ago
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Jean Wilson obituary

On 5 January 1950, Jean Wilson, who has died aged 103, inaugurated her charity, the British Empire Society for the Blind, answering the phone to journalists with “Which department would you like?” in a bid to conceal that it was such a tiny, two-person operation.Founded with her husband, John, and renamed Sightsavers in 1986, from these acorn beginnings it became a leading charity tackling blindness in developing countries. Today each year it funds more than 9m eye examinations and half a million sight-saving operations in 30 countries.Aged 19, Jean McDermid, as she was then, met John Wilson in 1943 when he lodged in her family home in Eastcote, west London. The couple, who married in 1944, shared a radical vision to help the millions of people globally affected by blindness

about 16 hours ago
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People living in UK’s poorest areas have less diverse gut bacteria, study finds

People living in the poorest areas of the UK have a less diverse range of bacteria in their gut, leading to worse health outcomes than their more affluent counterparts, according to a study.The research, led by academics at King’s College London and the University of Nottingham, analysed the gut bacteria of 1,390 female twins across the UK alongside their residential postcodes in order to identify the area’s socioeconomic status.Deprivation was measured using the Townsend Deprivation Index, which takes into account measures such as unemployment and overcrowding, as well as car and home ownership.The gut, or gastrointestinal system, is the route that food and drink takes through the body. It ensures that all the beneficial nutrients are absorbed and used for energy, growth and repair

about 24 hours ago
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The rise of rejection sensitive dysphoria: ‘My chest feels like it’s collapsing’

It makes rejection, teasing or criticism feel unbearable, often prompting a strong physical reaction. Sufferers describe life with a condition that is only just starting to be understoodJenna Turnbull’s chest is tightening. The 36-year-old civil servant, who lives in Cardiff, can picture herself as she speaks: an 11-year-old in her PE kit waiting with the other kids for her lesson to start. “We were outside by the courts waiting to play netball,” she says. “Somebody commented that I had hairy arms, one of the boys

about 24 hours ago
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Charity watchdog opens inquiry into running of care home for vulnerable adults

Charity watchdogs have launched a formal inquiry into the management of a learning disability care home that paid its chair £1m in fees and is just five weeks away from possible closure over a £1.6m unpaid tax bill.The Charity Commission rapidly upgraded the status of its investigation into allegations of financial mismanagement and poor governance at William Blake House just weeks after opening a lesser regulatory investigation into the charity.The opening of the inquiry comes amid Guardian revelations about the parlous state of William Blake House’s finances and an urgent bid to take over running of the home by families who fear their loved ones will be evicted.The charity, which relies on more than £3m a year of council and NHS funding, is one of a handful of specialist residential homes in England for adults with severe and complex learning disabilities

1 day ago
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Half of Britons avoid calling GP when they are ill, survey finds

Almost half the public delay or avoid contacting their GP surgery when they are ill, mainly because they think they will struggle to get an appointment.Overall 48% of people across the UK did not bother to ask their family doctor for help – either initially or at all – when they got sick over the past year, a survey found.Just over a quarter (27%) opted to manage the ailment themselves or waited for it to go away, despite doctors fearing that shunning GP care could seriously damage the person’s health.The findings underline the deep public concern about the ability to get fast access to vital NHS services such as A&E, GP care, hospital treatment and an ambulance if they call 999.The large number of people not calling their GP practice emerged in a survey that pollsters Ipsos undertook for the Health Foundation thinktank

1 day ago
foodSee all
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Should you sanitise your strawberries? Experts on the right way to wash fruit and vegetables

2 days ago
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Do you really need to chill cookie dough? | Kitchen Aide

2 days ago
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José Pizarro’s recipe for roast carrot, saffron and chickpea stew with spinach

2 days ago
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Rise of the ‘daycap’: is this the end of late-night drinking?

3 days ago
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Supermarket hot cross bun taste test: Choice gives top score to a chocolate bun

3 days ago
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‘Tinderbox’ UK may be one shock away from food riots, experts say

3 days ago