Omnicom to Restructure Global Operations After Major Acquisition

The company begins a sweeping overhaul, consolidating long-standing agency brands and cutting thousands of roles to adapt to an industry transformed by AI and rapid technological change.

Omnicom announced a significant restructuring plan that includes cutting more than 4,000 jobs and folding several iconic advertising agency brands into its larger networks, marking one of the most substantial shifts in the global advertising landscape in recent years.

The move follows the company’s multibillion-dollar acquisition of Interpublic Group, a deal aimed at strengthening Omnicom’s ability to compete in an industry reshaped by automation, digital platforms and changing client expectations.

The consolidation comes at a time when advertising firms face growing pressure from AI-driven creative tools and major technology platforms that offer businesses faster and more cost-efficient methods to produce and distribute ads.

This environment has pushed traditional agency groups to rethink their organizational structures, reduce overlapping functions and focus more directly on client-facing innovation.

As part of the overhaul, Omnicom will integrate legacy creative agency DDB, founded in 1949 and long considered a foundational name in global advertising history, into its TBWA network to streamline capabilities under a unified creative system.

MullenLowe, another long-standing creative agency, will also be folded into TBWA, reflecting a broader push toward simplified operations and connected brand strategies.

Similarly, FCB, one of the world’s oldest and most expansive agency networks with roots dating to the 19th century, will be absorbed into BBDO, another flagship Omnicom brand.

These integrations signal a major realignment of long-established names in the marketing world and underscore Omnicom’s intention to concentrate its creative strength within fewer but more globally scalable divisions.

The company confirmed that more than 4,000 roles will be eliminated as a result of the integration process, with most reductions concentrated in administrative and overlapping operational positions across the combined organizations.

Some senior leadership roles will also be affected, reflecting the depth of the restructuring required to unify the two major groups.

After the reductions, Omnicom said its workforce will be weighted heavily toward client-facing activity, with around 85% of roles dedicated to direct client support and project delivery and about 15% in administrative capacities.

The company emphasized that this shift is designed to increase agility, sharpen focus on creative output and ensure that more resources directly impact client outcomes.

Executives expect the financial benefits of the restructuring to exceed initial projections, with anticipated annual savings surpassing the previously estimated $750 million due to streamlined operations and reduced internal complexity.

These savings are intended to support long-term investment in AI capabilities, digital transformation and next-generation marketing technologies that are increasingly central to the global advertising market.

Omnicom said it aims to communicate employment changes clearly and promptly to affected teams, emphasizing transparency while ensuring privacy during the transition.

The company noted that despite the scale of the cuts, such restructuring reflects broader trends across the industry as agencies adapt to rapid technological and economic shifts.

Similar changes have been underway at rival firms, including major restructuring programs at WPP and earlier workforce reductions at Interpublic Group itself.

Interpublic had already laid off thousands of employees earlier in the year, while Omnicom made substantial staff cuts in 2024, signaling sustained pressure across the sector.

By consolidating historic brands into fewer but stronger creative networks, Omnicom aims to reinforce its competitive position and build a more simplified global structure capable of responding faster to client needs.

The company sees the acquisition and restructuring as a long-term strategy to navigate an era in which AI, automation and platform-driven advertising are changing both the nature and scale of creative work.

The transformation marks a significant moment for the global advertising industry as one of its most established players reshapes its identity to meet the demands of a rapidly accelerating digital era.

The months ahead will determine how effectively these structural changes translate into renewed creative momentum and operational efficiency across Omnicom’s global footprint.