WPP makes permanent headcount reductions as quarterly revenue slips 4.9%

Writer,

Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

Advertising group WPP said it had made some permanent headcount reductions as its revenue slipped 4.9% in the first quarter amid the Covid-19 crisis.

WPP did not specify how many staff had been made redundant.

'While we continue to protect our people as much as possible from redundancy, as well as ensure our ability to serve clients and grow when markets recover, we have had to reduce headcount in certain areas,' it said.

More than 3,000 people with salaries above certain levels had also committed to give up 10-20% of their salary for an initial three-month period.

WPP had previously announced that it was suspending dividend and cutting executive and director pay by 20%.

On a like-for-like basis, revenue in the three months through March fell 3.8%, with the impact of Covid-19 felt more strong in March.

Chief executive Mark Read said the company had won $1bn of new business in the first quarter, including a global integrated Intel account, creative duties for Discover and media accounts for Hasbro and Novo Nordisk.

'At a time of great uncertainty, I am very proud of how our people and clients have responded,' Read said.

'Despite the economic challenges that will, no doubt, be with us for some time, the way we have come together gives us real confidence in our future.'