APAC headcount drops 4.8% as IPG’s global workforce shrinks by 4,100 in 2024

Interpublic’s two biggest markets, the US and the UK, had the biggest percentage drops in staff headcount during 2024 as the agency group cut costs and simplified operations ahead of its planned sale to Omnicom.

Global headcount fell about 7.1% to 53,300 at the end of 2024 versus 57,400 at the end of 2023, according to the annual report, which gave a regional breakdown.

The owner of agencies including FCB, Initiative, McCann and UM said at its Q4 results in February that headcount fell about 5% on an organic basis, which suggests it cut about 2900 roles.

It is thought IPG’s decision to sell several agencies led to the remaining reduction in headcount of close to 1200 people.

IPG sold Hill Holliday and Deutsch New York in January 2024 and held Huge and RGA for sale at the end of Q3, which may have had a greater impact on US headcount.

Interpublic’s employee base dropped by 11.3%, or 2,700 roles, to 21,100 in the US and by 4.2%, or 1400, to 33,200 in the rest of the world.

The UK suffered the most by region on a percentage basis after the US with a decline of 5.8%, or 300 roles, to 4,900.

APAC headcount dropped 4.8%, or 500, to 10,000. Latin America fell 4.3%, or 300, to 6,700. Continental Europe slipped 2.9%, or 200, to 6,600. Other regions were down 2.4%, or 100, to 4,000.

A spokesperson for IPG declined to comment on its staff numbers.

IPG increased annual revenues by 0.2% on an organic basis in 2024 as it suffered a number of major account losses, including Pfizer’s creative and Amazon’s media.

The holdco said at its earnings call that those account losses were equivalent to about 4.5% to 5% of revenues, which was roughly in line with the organic decline in headcount in 2024. IPG also won business, including Volvo’s global media account, in December.

Further job cuts are expected in 2025

IPG expects revenues to decline by 1% to 2% in 2025 and is planning further cuts to save $250 million (£200 million). 

That is separate from its joint plan with Omnicom to find $750 million in annual synergies after their merger, which is due to complete by the end of 2025.

Philippe Krakowsky, the chief executive of IPG, told a Barclays symposium last week that the agency group is aware of the potential risk of “talent flight” if key staff leave during the current limbo period and “we’re focused on making sure that we secure them through the transaction."

Krakowsky said IPG is “spending time pointing out to them [talent] that we really are very focused on [keeping] whoever is stronger or strongest” in particular areas and “making sure that there will be thoughtful decision-making” when job cuts are made during the merger process.

He acknowledged there is a need to make “some sizeable savings”. Asked which roles were most likely to be at risk, he said “not front of house” roles—“not client-facing or revenue-generating." Instead redundancies will be focused “more in support structures”, according to Krakowsky, reiterating a message he and John Wren, the chief executive of Omnicom, have given since the merger announcement.

Omnicom also cut headcount ahead of merger

Campaign previously reported Omnicom’s global headcount dropped by 1000 to 74,900 in 2024. The group acquired 2000-strong Flywheel at the start of last year but went on to cut 3,000 roles.

The US also bore the brunt of Omnicom’s role reductions as it cut headcount by 2,800 in its home market and added a similar number in Latin America.

It means Omnicom and IPG jointly employed 128,200 at the end of 2024 versus 133,300 a year earlier.

More job cuts are expected. The two companies have told investors that the merged company will have “over 100,000 practitioners”.

WPP and Publicis Groupe are the two largest agency groups by staff numbers, each employing 108,000 at the end of 2024.

WPP’s headcount dropped by 6100, partly because of the disposal of FGS, and Publicis’ employee base increased by about 5000, partly because