IPG sheds 3,200 jobs, vacates office space ahead of Omnicom merger

Interpublic Group (IPG) has cut 3,200 roles globally so far this year, including 800 in the September quarter alone and vacated 135,000 square feet of office space in Q3 2025, according to its latest filing with the U.S. Securities and Exchange Commission.

The restructuring forms part of IPG’s multi-phase transformation programme designed to “enhance offerings and drive significant structural expense savings” ahead of its planned $13.5 billion merger with Omnicom, expected to close by the end of November.

The layoffs affected staff across executive, regional, account management, creative, media, and administrative functions. In total, the group has exited roughly 730,000 sq ft of real estate this year. 

In its filing, IPG said the restructuring is projected to cost between $450 million and $475 million, including $177.7 million in severance, $108 million in lease impairments, and $165 million in related expenses such as advisory and integration costs.

An organic decline in revenue before billable expenses of 2.9% was recorded for Q3, reflecting net client losses in retail and auto & transportation sectors, and reduced spending among existing clients. The declines were partly offset by growth in healthcare and food & beverage accounts.

The company ended the quarter with $1.45 billion in cash and equivalents and total debt of  $3.04 billion, slightly down from $3.09 billion a year earlier. 

Chairman and CEO Philippe Krakowsky said IPG remains focused on “balancing disciplined cost management with continued investment in capabilities that drive client growth, particularly in data, commerce and performance media.”

The disclosure comes as the holding company prepares to integrate overlapping agency networks, including McCann Worldgroup, FCB and MullenLowe from IPG, and DDB, BBDO, and TBWA from Omnicom, once the merger clears its final regulatory hurdle in the EU.

John Wren, CEO, Omnicom, said that the holding company is currently planning to outline its post-merger structure and portfolio the week of CES in January 2026.

On the Omnicom side, the holding company is also conducting a “rigorous” review of all its agency brands, amid industry speculation that its DDB network may be retired or scaled back post-merger.

In an earlier report, Campaign reported that while the DDB brand is unlikely to disappear entirely, Omnicom is expected to retain it in select local markets where it best serves client needs.

Omnicom said in a statement: “We are undertaking a rigorous and considered process to ensure we have the very best solutions for the future for us and for our clients. This sentiment is informing everything we do in our go-forward plans.”

The combined entity will create the world’s largest advertising group by revenue, surpassing WPP.