Omnicom to cut 4,000 jobs and close agencies after IPG takeover, FT says

The Financial Times reports that Omnicom Group is preparing to cut roughly 4,000 jobs and close several of its agencies in the wake of Interpublic Group’s (IPG) takeover. The measures are described as part of an integration and cost-savings program intended to eliminate duplicative roles, consolidate client accounts and streamline overlapping creative and media services across the combined businesses.

According to people briefed on the plans, Omnicom executives expect the layoffs to span global operations and touch multiple layers of the organization, including agency management and support staff. Several smaller agencies are slated for closure or merger into larger units as IPG and Omnicom align portfolios and reduce back-office expenses. The FT report cites internal deliberations and stakeholder discussions rather than formal company announcements.

Industry analysts say the size and scope of the cuts reflect the complexity of merging two major advertising holding companies. The consolidation could deliver significant annual savings but also risks client attrition and talent departures during the integration. Clients sensitive to agency stability may reassess relationships if service teams change or roles are eliminated.

Market reaction to the FT disclosure was muted, with investors weighing potential cost synergies against execution risks and reputational fallout. Executing large-scale layoffs while maintaining creative output and client trust will be a central challenge for the merged organization.

Omnicom and IPG had not confirmed the details publicly at the time of the report; both firms typically seek to coordinate messaging around people moves and agency restructuring in formal communications. The Financial Times attribution indicates the developments are under active consideration as leaders finalize integration plans.

Observers note that large-scale consolidation in advertising often triggers regulatory, cultural and contractual complexities, particularly when client conflicts or international labor rules come into play. The reported job cuts and agency closures would be among the more substantial workforce reductions the sector has seen in recent consolidation cycles, underscoring the high stakes in merging two global ad giants.