GroupM, speculated to be rebranded to WPP Media, will retain its agency brands as “client service brands” that will house “dedicated client teams”.
However, agency brand job titles will be “sunset” to align across the wider group amid consolidation.
The Media Leader also understands agencies will no longer operate as distinct business units with separate profit and loss (P&L) statements.
The changes, which were first revealed in an email circulated to staff by GroupM global CEO Brian Lesser on Tuesday, are anticipated to begin impacting jobs as soon as this week as GroupM moves to a “single operating model”.
Media agencies under GroupM include EssenceMediacom, Wavemaker and Mindshare. Globally, the group employs over 40,000, more than a third of WPP’s staff.
GroupM UK CEO Kate Rowlinson told The Media Leader in an interview last month that “there’s nothing more certain than change in our industry and in our business”.
“I think there’s quite a lot of conversation at the moment around, you know, what is GroupM?” she acknowledged. “For me, GroupM is an innovator. We’ve innovated throughout our history and we continue to innovate moving forward.”
Innovation has been necessitated as WPP has fallen behind rivals Publicis Groupe and Omnicom Group in terms of organic growth, with Lesser brought in last year to drive a data- and technology-led transformation for GroupM.
The result has been ongoing efforts at consolidation culminating ultimately in the disintegration of GroupM’s agency brands as they currently operate. Under Lesser, significant turnover has occurred among GroupM leadership, including the removal of global agency CEO roles at EssenceMediacom, Wavemaker and Mindshare.
In a post on LinkedIn, media industry veteran Brian Jacobs reflected that the changes are likely “going to lead to job losses, affecting many talented people, none of whom are responsible”.
He added: “It’s going to be a difficult and stressful time for many.”
