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WPP's pre-tax profits plunge 71% as clients cut ad spend
WPP, one of the world's biggest ad agencies, just reported a 71% drop in pre-tax profits for the first half of the year—down to £98 million.
The main reason? Big clients in cars and consumer goods are spending less on ads after new tariffs were introduced.
WPP has cut its interim dividend
To cope, WPP has cut its interim dividend and is bringing in Cindy Rose as the new CEO this September.
The company also trimmed its global staff by 7,000 and lost major contracts with brands like Coca-Cola and Paramount.
Even with £300 million now going into AI each year, WPP's share price has taken a tumble and competition from tech giants like Meta is only getting tougher.