WPP's CEO sets out integrated agency plan to stem years of underperformance

LONDON, Feb 26 (Reuters) - WPP plans to wrap its many different businesses into one integrated company, enabling it to cut costs and better respond to the threat posed by artificial intelligence, under a new strategy by boss Cindy Rose following years of underperformance.

Once the world's largest advertising company, WPP has struggled to better connect its hundreds of ad agencies, PR companies and data groups to provide clients with a streamlined offering of advertising and marketing services.

Rose, who became CEO in September last year, said she would also consider selling some assets as she brings the Ogilvy, VML and AKQA creative agencies under the WPP Creative umbrella, underpinning a cost-cutting target of 500 million pounds ($677 million) a year by removing duplicated roles.

Under the plan, WPP Creative will be one of four divisions, alongside WPP Media, WPP Production and WPP Enterprise Solutions.

The new strategy is designed to return WPP to organic growth during 2027, with no upturn forecast in the short term.

The company, built by the businessman Martin Sorrell through years of dealmaking, reported an underlying 5.4% drop in like-for-like revenue less pass-through costs, known as net sales, in 2025 and it forecast a decline in the mid to high-single digits in the first half of 2026, with an improving trajectory in the second half.

"Today we are unveiling a bold plan for a simpler, more integrated WPP that's fit for the future," Rose said.

"Our intention is to stabilise the business, return to organic growth, create capacity to invest in the future and deliver attractive returns for our shareholders."

($1 = 0.7378 pounds)

(Reporting by Paul Sandle; Editing by Kate Holton and William James)