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WPP has issued its second profit warning this year following weaker-than-expected results for the third quarter. New CEO Cindy Rose, who took over just last month, acknowledged on a press call that the company's financial performance isn’t where it needs to be. She stressed her commitment to turning things around and laid out a plan aimed at addressing the challenges WPP faces. Rose’s roadmap centers around simplifying the business, adopting competitive pricing strategies, and leveraging AI more aggressively. She admitted that the company has been slow to adapt to the shifting demands of its clients, who now expect simpler, more integrated offerings powered by media, data, and artificial intelligence, all while being priced efficiently and designed to drive actual growth.
Rose highlighted that the coming months will focus heavily on client acquisition and retention, sharpening WPP’s go-to-market approach, and restructuring the organization to build a high-performance culture. The firm is also exploring ways to grow its addressable market, possibly through integrating or developing new enterprise technology solutions, although Rose didn’t provide specific details on those initiatives. Her tenure began following the departure of Mark Read, who led WPP through a turbulent seven years marked by reorganization hiccups and significant client losses.
WPP’s troubles this year have been compounded by the messy reorganization of its media division, struggles to accelerate AI adoption, and major clients like Coca-Cola and Mars moving their media accounts to French competitor Publicis. Since stepping in, Rose has quickly enacted leadership changes and secured a $400 million deal with Google to integrate advanced AI tools into WPP’s AI marketing platform, WPP Open. The company also recently launched a self-serve version of this platform targeted at small businesses and performance marketers, aiming to capture new revenue streams.
Rose sees WPP Open’s common data model as a crucial advantage, helping clients optimize their marketing spend across all functions. She described recent moves as bold and decisive steps in the right direction and promised more of the same going forward. However, she emphasized the need to move faster and push further in adapting to the market.
An important part of the turnaround is revitalizing WPP’s media arm, rebranded from GroupM earlier this year. Rose expressed confidence in CEO Brian Lesser’s vision for an open, privacy-compliant, data- and AI-driven ecosystem. Signs of progress include winning new business from Mastercard, Maersk, and Marks & Spencer in Q3. Looking ahead, WPP plans to share a more detailed strategy with the public next year.
Despite the setbacks, Rose remains optimistic about the company’s future. She pointed to WPP’s strong foundations: impressive client relationships, top-tier talent, and some of the world’s most influential agency brands. With unmatched global scale, market-leading technology, and valuable partnerships, she believes WPP has a unique platform to build upon and expects the company to emerge stronger as it executes its turnaround plan.
