Omnicom to cut 4,000 jobs after IPG merger; iconic ad agencies to shut

Omnicom will cut over 4,000 jobs and close several well-known agency brands after its $13 billion takeover of IPG, as the company restructures to reduce costs and compete with big tech

After completing its $13-billion acquisition of Interpublic Group (IPG), Omnicom has started a major restructuring plan that will cut more than 4,000 jobs and retire several historic advertising agency names, according to a report by the Financial Times.

 

The move follows the consolidation of two of the world’s biggest marketing companies, which has now pushed Omnicom to the top of the global ad industry by revenue, ahead of Publicis and WPP. Company executives say the changes will take place immediately and reflect the need to simplify overlapping functions across dozens of agencies, the report said.

 

Iconic agencies to be folded into new structures

 

The merger will bring an end to some of the most established names in advertising. Omnicom confirmed that DDB, founded in 1949 and once led by legendary adman William Bernbach, will merge into TBWA. The creative marketing firm MullenLowe will also move under the TBWA network.

 

 

Another long-standing agency, FCB, which dates back to 1873 and has been a major global brand within IPG, will become part of BBDO, another Omnicom-owned network. 

Job cuts across combined company

 

Omnicom Chief Executive Officer John Wren confirmed that more than 4,000 positions will be eliminated across the combined company. While most reductions will affect administrative roles, some senior leadership posts will also be cut.

 

“There’s efficiencies, they come in the form of labour and other things,” Wren said, as quoted by the Financial Times. “But anybody that was generating revenue before December last year has a very good position with us today.”

 

The new layoffs come on top of earlier reductions. IPG removed 2,400 jobs in the first half of 2025 and nearly 4,000 roles the previous year. Omnicom, too, trimmed its workforce by 3,000 last year.

 

The takeover received its final approval from European regulators last week. Wren said the financial gains from the deal would surpass the $750 million in annual savings previously projected

Advertising under pressure from tech, AI

 

The merger is taking place at a time when traditional advertising groups face growing pressure from major tech companies, including Google and Meta. These platforms now dominate digital marketing, giving brands both the tools and channels they need for targeted promotions, the news report said.

 

At the same time, rapid advances in artificial intelligence are challenging the creative value long associated with agencies. AI tools allow marketers to produce ads more quickly and at lower cost, a shift that has contributed to Omnicom’s 17 per cent share decline so far this year.

Leadership roles and talent retention

 

The combined entity will retain key leaders from both companies. Philip Angelastro will continue as chief financial officer, while Daryl Simm will share the president and chief operating officer role with Philippe Krakowsky, formerly IPG’s chief executive.

 

Wren also pushed back against concerns that the merger would trigger mass resignations or client losses, saying that “despite all the early predictions about talent loss” the company has not faced major disruptions, the news report said.

 

Omnicom advertising chief Troy Ruhanen added that the merger was not meant “to get rid of a competitor” but to strengthen client services. Wren said the company will now share investments in technology and AI tools across all networks, which he believes “gives us a huge opportunity”.