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WPP to Shed 6% of Workforce
Marcoms giant WPP, which eliminated 3,600 positions in Q1, is planning to make 6% of its global workforce redundant resulting in the loss of 7,200 posts in all this year.
 It is not known if any of the redundancies will be made at WPP's information, insight and consultancy division Kantar, which employs around 26,500 staff globally at more than 20 agencies including recently acquired TNS, Millward Brown, Research International, BMRB, and Lightspeed Research.
The number of job losses is based on WPP's indication that like-for-like revenues would decline by about 5% in 2009, and follows the group's reported 5.8% fall in Q1 revenues. This figure is about double that predicted by CEO Sir Martin Sorrell two months ago, which he says reflects a cut in client spending in reaction to the global financial and economic crisis.
A report in the Observer newspaper said scores of people in London, as well as elsewhere in the UK, could be affected as the firm looks to reduce its global headcount to 106,000 by the end of 2009.
Last week, WPP strengthened its balance sheet via a £450m convertible bond issued to investors to help pay down more than £1bn debt used to purchase TNS last year.
Separately, the group says it is currently considering a possible replacement for Sorrell, should he choose to leave the firm suddenly, or if the group should dispense with his services. Although he has no immediate plans to step down, under the terms of his contract, Sorrell is entitled to leave 'at will' with no statutory notice period. As part of its succession planning, the group is looking at possible internal candidates, as well as individuals outside the company.
Web sites: www.wpp.com and www.kantargroup.com .
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